Citi economist Benjamin Nabarro said Britain's high inflation problem - the country's main measure of consumer price growth remains above 10% - were reflected in the findings which held well above pre-pandemic ranges," the report said.
"However, today’s data still suggest UK inflation expectations overall remain anchored at target-consistent levels," Nabarro said.
"With acute shortages and food inflation primarily responsible for recent volatility, we think risks around these data are more likely to ease in the months ahead than intensify further." The BoE is widely expected to raise borrowing costs again on May 11 after its monthly monetary policy meeting, with inflation running at five times its 2% target. Investors are putting a 92% probability on a 25 basis-point increase in Bank Rate to 4.5% and roughly 50 chance of hitting 5% by August.
(Reporting by Muvija M; Editing by Kate Holton, William Schomberg and Louise Heavens)
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