A Bank of England survey released on Friday showed that the British public's expectations for consumer prices in the coming year climbed sharply last month but were little altered looking further ahead.

According to the survey, which was conducted by market research firm Kantar, inflation estimates for the coming year increased to 3.2% from 2.7% in August and 2.4% in May.

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Longer-term inflation expectations, which the Bank of England closely monitors, rose to 3.1% from 3.0% in August and 2.7% in May, indicating a more moderate increase.

Following a surge in the UK's consumer price index to a 10-year high of 4.2% in October, the Bank of England is keeping a closer eye on inflation forecasts than normal.

On December 16, the Bank of England is expected to announce its next interest rate decision. Following the emergence of the Omicron coronavirus variant, investors have reduced their bets for the first increase in Bank Rate since the pandemic.