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UK inflation expectations fall again in February - Citi/YouGov

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FILE PHOTO: People walk past a sign in a shop window amid the outbreak of the coronavirus disease (COVID-19) in Manchester, Britain
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LONDON (Reuters) - The British public's expectations for inflation in the coming year fell to 2.9% in February from to 3.3% in January, a survey from U.S. bank Citi and polling firm YouGov showed on Tuesday.

"Levels here are now at their lowest level since the start of the pandemic, though still 0.4 percentage points above their long-run (post-2005) average," economists from Citi said.

"Reductions in January coincided with a reduction in Brexit-related uncertainties. This month, improvements in the outlook for the pandemic may have contributed to a reduction," they added.

Longer-term expectations for inflation over the next five to 10 years eased down to 3.3% from 3.4% in January, the survey showed.

"Household inflation expectations remain well-anchored, but further increases in long-run expectations could still suggest challenges," Citi said.

(Writing by William Schomberg, editing by David Milliken)