UK inflation expectations hit six-year high in August, poll shows

Britons' inflation expectations hit a six-year high in the likely run-up to the UK's exit from the European Union, the results of a widely-followed survey showed.

According to a poll conducted by Citi and YouGov, inflation expectations for the 12 months ahead picked up from 2.9% in July to 3.2% for August.

"Such high levels have previously usually been associated with high energy prices," Citi said.

"However, in the absence of those at the moment, the increase could be driven by rising chances of a rupture with the EU on 31 October, which could lead to higher consumer prices via tariffs, supply disruptions and weaker sterling."