UK public’s inflation expectations have leapt, survey finds

Prediction of 3.1% in Citi/YouGov poll comes days before Bank of England meeting on interest rates

The British public expects inflation to jump over the coming year before it stabilises, according to a survey conducted days before the Bank of England makes its own assessment of whether it should impose higher borrowing charges to calm rising consumer prices.

The Citi/YouGov poll showed public inflation expectations for the next 12 months rose to 3.1% in July from 2.8% in June, taking this measure further above its long-run average, though below a peak of 3.8% reported last December.

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