Britons' inflation expectations for the year ahead were unchanged in July at 2.4 per cent, a monthly survey by polling company YouGov showed today.
The poll - conducted on behalf of Citi - showed that inflation expectations for the next 5-10 years rose marginally to 3.3 per cent in July from 3.2 per cent in June.
"All of this highlights the lack of domestic inflation pressure and, with the inflationary effect from sterling's decline now fading, the UK is heading for a persistent undershoot of the 2 per cent inflation target in our view," said Citi economist Michael Saunders.
British inflation fell much more than expected in June to a two-and-a-half year low of 2.4 per cent.
City A.M. Reporter