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UK Public's Medium-Term Inflation Expectations Stay High in May

LONDON, June 13 (Reuters) - The British public's expectations for inflation over the medium term remained at their highest in several years although short-term expectations fell, according to a Bank of England survey on Friday ahead of its interest rates decision next week.

The central bank looks closely at surveys of the inflation expectations among the public and investors for a guide as to how likely people are to seek wage rises or accept higher prices for goods and services.

May's survey showed expectations for inflation in five years' time held at 3.6%, unchanged from February's reading which was the highest since November 2019.

Expectations for inflation in one to two years' time remained 3.2%, the highest since November 2022, while expectations for one year's time dropped to 3.2% from 3.4%.

Britain's Office for National Statistic reported that consumer price inflation rose to 3.5% in April from 2.6% in March.

The BoE survey was based on polling of people aged 16-75 between May 9 and May 13.

Reporting by David Milliken; editing by Suban Abdulla

Source: Reuters


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