Public inflation expectations in Britain reversed recent declines in August, with expectations for price growth over the next 12 months rising to 3.9% from 3.4% in July. Longer-term expectations increased to 4.1% from 3.7%, reaching their highest level since April. Citi described the shift as a hawkish development as inflation is expected to pick up in coming months. The Bank of England is monitoring whether higher energy prices caused by the Iran war could create longer-lasting inflation pressures. Citi cautioned against reading too much into a single report and said the next month’s release should provide a clearer indication of how to interpret the increase.