The July reading fell from 3.9% in June, suggesting some improvement in inflation sentiment even as expectations remain above target.
UK long-run inflation expectations fell to 3.7% in July from 3.9% in June, based on a Citi/YouGov survey. The decline points to a modest cooling in consumer inflation sentiment, although the level remains above target. That leaves a mixed signal for policymakers: expectations are moving in a more favorable direction, but they have not yet returned to a level consistent with the inflation goal.