One-year inflation expectations unchanged
The Bank of England is likely watching the monthly surveys from Citi/YouGov on British inflation expectations. This month's reading will give them some reassurance that higher price expectations aren't creating a feedback loop.
The good news is that one-year inflation expectations were unchanged at 3.1% in August. The bad news is that long-term inflation expectations ticked up to 3.5% from 3.4%.
These numbers run higher than reality everywhere so policymakers pay attention to changes rather than the absolute numbers.
