LONDON (Reuters) -Inflation expectations for the next 12 months rose in July to 4% from June’s reading of 3.9%, according to a survey published on Friday by bank Citi and opinion poll firm YouGov.
Longer-term expectations fell to 4.2%, down from June’s 4.3% and back to a level they touched in May, the survey showed.
Official data published earlier this month showed British consumer price inflation rose to 3.6% in the 12 months to June from 3.4% in May – well above the Bank of England’s 2% target.
The BoE says it is moving carefully and gradually with cutting interest rates as it tries to reduce the inflation risks still in the economy at a time when there are also signs of a slowdown in the jobs market.
(Reporting by Muvija M; Writing by William Schomberg)
