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UK inflation expectations edge up in September - Citi/Yougov

A shopping trolley is pushed around a supermarket in London, Britain May 19, 2015. REUTERS/Stefan Wermuth

LONDON (Reuters) - The British public's expectations for inflation in the next 12 months rose slightly in September, according to a survey published on Thursday. The monthly YouGov/Citi survey found year-ahead inflation expectations edged up to 1.5 percent from 1.4 percent in August but below July's level of 1.6 percent. Expectations for inflation over the next five to 10 years were stable at 2.7 percent. Official figures showed British consumer price inflation was zero in the 12 months to August. "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 (Monetary Policy Committee) to hike rates at present," he said, adding that Citi expected that rates would not rise in the next 12 months. (Writing by William Schomberg; editing by Michael Holden)