(Reuters) -The British public’s expectations for inflation over the medium to long term, which are closely watched by the Bank of England, rose in October, according to a survey published on Monday.
Inflation expectations in five to 10 years’ time picked up to 3.5% from 3.3% in September, the survey by U.S. bank Citi and polling firm YouGov showed.
Public expectations for inflation in 12 months’ time were stable at 4.2%.
“With compressed corporate margins risking a more persistent period of elevated price growth, both fiscal and monetary policy should remain cautious,” Citi economist Benjamin Nabarro wrote in a note to clients.
“We expect the changes to leave cumulative growth through 2024/5 worse off overall”.
(Reporting by Nilutpal Timsina in Bengaluru; Editing by Leslie Adler and Stephen Coates)
