UK year-ahead inflation expectations highest since December 2017 – Citi/YouGov

FILE PHOTO: Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017. REUTERS/Leonhard Foeger/File Photo

LONDON (Reuters) – Rising oil prices have pushed up the British public’s expectations for inflation over the coming year to their highest since December, a monthly YouGov survey for Citi showed on Wednesday.

Public inflation expectations for the next 12 months rose to 2.7 percent from 2.5 percent, while longer-run inflation expectations for the next 5-10 years held broadly steady at 3.3 percent.

“The recent rise in the oil price and the associated increase in fuel prices have led to a rebound in households’ inflation expectations,” Citi economists wrote in a note to clients.

“We expect the Bank of England to look through any temporary upward impact of energy prices on inflation,” they added.

Official data showed that consumer price inflation rose last month for the first time since November, to 2.5 percent.

The Citi/YouGov survey is based on a poll of 2,006 adults conducted on Aug. 20 and Aug. 21.

Reporting by David Milliken, editing by Andy Bruce