UK short-run inflation expectations edge up to 2.7 percent - Citi/YouGov

FILE PHOTO: Shoppers are reflected in a shop window as they walk along Oxford Street on the last Saturday before Christmas, in London December 21, 2013. REUTERS/Luke MacGregor/File Photo

LONDON (Reuters) - The British public’s expectations for inflation over the coming year edged up this month, but longer-term expectations dropped to an eight-month low, a monthly survey showed on Friday.

Year-ahead inflation expectations rose to 2.7 percent in November from October’s 2.6 percent, while expectations for the next five to 10 years sank to 3.1 percent from 3.2 percent, the lowest since March, the Citi/YouGov survey showed.

“The decline could be the result of the increasingly palpable impact of Brexit uncertainty on the growth outlook - although no deal is likely to lead to higher inflation in the short-run - or a continued reaction to falling oil prices,” Citi economists Christian Schulz and Ann O’Kelly wrote.

The data is based on a YouGov poll of 2,035 adults conducted on Nov. 20 and Nov. 21.

Reporting by David Milliken; editing by Stephen Addison