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Citi/YouGov: UK Inflation Expectations Rise To Long Run Avg

MNI (London)
-UK Aug Short-Term Inflation Expectations 2.6% Vs 2.5% July; Longer-term 3.2%
By David Robinson
     LONDON (MNI) - The latest Citi/YouGov survey found UK inflation
expectations nudged higher in August, hitting the survey's long-run average.
     Short-term inflation expectations rose to 2.6% in August from 2.5% in July,
while longer-term ones, for 5-10 years ahead, rose to 3.2%, their highest level
since 2013 and matching the series' average.
     The data show that with inflation having picked up sharply in the wake of
sterling's post-EU referendum slump, consumers are now back to expecting
inflation to run above the Bank of England Monetary Policy Committee's 2.0%
target. 
     Their expectations are pretty close to the MPC's central forecast, as that
shows CPI holding above the 2% target throughout the three year forecast
horizon.
--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com
[TOPICS: M$B$$$,M$E$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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