The latest survey conducted by the US Citibank and pollsters YouGov showed that the British public's expectations for inflation continued its fall in July.

Key details

“The expectations for inflation in five to 10 years' time dropped to 3.8% in July from 4.0% in June.”

“Inflation expectations for 12 months' time edged down to 6.0% from 6.1%.”

“The Bank of England watches closely for signs that price pressures might be becoming embedded.”

Separately, UK leadership candidate Rishi Sunak said that he “would fund proposed income tax cut by growing the economy and being disciplined with public spending.”

It is “not wise to embark on an excessive borrowing spree when inflation is on the rise,” Sunak added.

Market reaction

The pound is unfazed by the above survey findings, as GBP/USD keeps its range around 1.2185 so far this Monday. The spot is up 0.18% on the day.