UK year-ahead inflation expectations slip to 2.6% in May - Citi/YouGov

FILE PHOTO: Electricity pylons are seen in London, Britain August 1, 2017. REUTERS/Neil Hall/File Photo

LONDON (Reuters) - The British public’s expectations for inflation over the coming year edged lower in May but remained unchanged for the next 5-10 years, a monthly survey showed on Wednesday.

The Citi/YouGov survey showed short-run inflation expectations fell to 2.6% in May from 2.7% in April, while the longer-run measure held steady at its survey average of 3.2%.

“Uncertainty about the outlook remained high as measured by the share of ‘don’t know’ answers,” Citi said, adding that households expected higher inflation for the next year than the 1.7% forecast by the Bank of England this month.

The poll surveyed 2,036 adults and was conducted on May 20 and May 21.

Reporting by David Milliken; editing by Stephen Addison