UK public inflation expectations edge lower: Citi/YouGov

A shopper leaves a Morrisons supermarket in south London

LONDON (Reuters) – British public inflation expectations for the next 12 months fell this month for the first time since June’s vote to leave the European Union, a monthly survey for U.S. bank Citi showed on Friday.

Citi said inflation expectations for the coming year dipped to 1.7 percent from 1.8 percent in July and August, which had been the highest readings since late 2014.

“Renewed weakness in fuel prices over the summer may well have contributed to the decline,” Citi economists said.

Inflation in Britain remains low at 0.6 percent in the 12 months to August. But the Bank of England forecasts consumer price inflation of will rise to 1.9 percent for the 12 months to the end of the third quarter next year, with sterling’s sharp fall after the Brexit vote pushing up the price of imports.

Longer-term expectations for the next 5-10 years were broadly stable at 2.6 percent, Citi said.

The expectations are based on a poll of 2,069 adults carried out by YouGov between Sept. 20 and Sept. 21.

(Reporting by David Milliken; editing by William Schomberg)