UK year-ahead inflation expectations jump to 3.8% – Citi/YouGov

LONDON (Reuters) – The British public’s expectations for average inflation over the next 12 months jumped to 3.8% in December, their highest since 2011, from 3.3% in November, a survey by YouGov for U.S. bank Citi showed on Thursday, a possible sign of concern over Brexit.

Expectations for inflation over a five- to 10-year horizon remained steady at 3.4%.

“Despite recent moderation, inflation expectations remain relatively high,” Citi economists wrote in a note to clients.

“Brexit uncertainty has previously tended to drive inflation expectations higher. However, the latest developments seem to have only impacted short-run expectations thus far.”

YouGov polled 2,040 adults on Dec. 14 and 15.