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UK public's inflation expectations surge in March - Citi/YouGov

FILE PHOTO - Fruit is displayed for sale at a market stall in Great Yarmouth

LONDON (Reuters) - The British public's expectations for inflation in the year ahead surged in March when the pound plunged as the coronavirus outbreak escalated, a survey from U.S. bank Citi and polling firm YouGov showed on Monday.

Inflation expectations for the next 12 months shot up to 3.2% from 2.3% in February, the highest level since August last year. "Unusually, this was despite a sharp reduction in oil prices," economists from Citi said.

"With short-run expectations also contradicting many – including our own – expectations that inflation is now likely to fall, sharp adjustments in inflation expectations may be necessary over the coming months."

(Reporting by Andy Bruce; Editing by William Schomberg)