(Reuters) -The British public’s short-term inflation expectations remain unchanged at 4% in August, according to a survey published on Friday by bank Citi and opinion poll firm YouGov.
The country’s longer-term inflation expectations fell to 3.9% from 4.2%, to their level in February, the survey showed.
“The decline in longer-term expectations for last three month also suggests that progress is occurring, even if slowly,” Citi analysts said in the research note.
There is still a risk that continued food price inflation could push these figures higher in the coming months, but so far it does not seem to have significantly affected expectations, Citi analysts added.
Earlier this month, the Bank of England cut interest rates but four of its nine policymakers sought to keep borrowing costs on hold due to concerns over high inflation.
The BoE, in the latest monetary policy report, revised up its forecast for a peak in inflation to 4% in September from 3.7% and said it would remain alert to the risk that the increase in prices could push up wage deals and longer-term price pressures.
(Reporting by Angela Christy in Bengaluru, Editing by Franklin Paul)
