UK inflation expectations edged higher in September

Twelve months out, the cost of living was seen rising at a 1.5% clip according to the results of the latest monthly YouGov/Citi survey.

That was one tenth of a percentage point higher than in the previous month.

Expectations for inflation over the next five to ten years were stable at 2.7%.

"The low level of inflation expectations probably will not prevent pay growth picking up a bit in the coming year, but probably does signal that any pickup in pay will be modest rather than sharp," Citi economist Michael Saunders said.

"Against this background – and with signs that growth is slowing – there is no urgent need for the MPC to hike rates at present."