LONDON (Reuters) – The British public’s expectations of future inflation have fallen sharply this month, though uncertainty about the future path of inflation has risen due to the unclear prospects for sterling from the Brexit process, a monthly survey showed.

Public expectations for inflation over the coming year sank to 2.6 percent in January from 2.9 percent, while expectations for the next 5-10 years fell to 3.0 percent from 3.3 percent, the Citi/YouGov survey showed.

The proportion of people surveyed who did not know what would happen to inflation rose to a record high of 21 percent.

“With no-deal Brexit still possible and many expecting sterling to depreciate significantly in that case … uncertainty has spiked. This uncertainty likely weighs on household decisions and thus economic activity as well,” Citi economists Christian Schulz and Ann O’Kelly said.

The survey of 2,018 people took place between Jan. 21 and Jan. 22.

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