UK public inflation expectations hit two-year high

The UK public's long-term inflation expectations have climbed to a two-year high of 3%, according to a closely watched monthly survey published on Wednesday.

YouGov survey for investment bank Citi showed that in December households predicted inflation will reach 3% over the next five to 10 years, up from 2.8% a month before and the highest level since September 2014.

In the shorter term, consumers expect inflation of 2.43% in 12 months' time, up from the preceding forecast of 2.36%.