The British public’s expectations for future inflation continued to fall in July, ​according to a survey from US bank Citi ‌and pollsters YouGov.

Expectations for inflation ​in five or more years’ time fell to 3.7 per cent in July from 3.9 per cent ⁠in June, the survey showed.

Year-ahead ​expectations, which tend to be influenced by moves in short-term ​inflation and energy prices, decreased to 3.4 per cent from 3.8 per cent.

The BoE’s policymakers routinely monitor inflation expectations for signs that price pressures could become ​embedded among consumers as well as businesses.

The surge in ​energy costs triggered by the Iran war prompted the central bank ‌to ⁠pause its run of interest rate increases earlier this year.

“Like with gas prices, there remains a risk that a delayed increase in pump prices could trigger a small ​increase in expectations,” Callum ​McLaren-Stewart, an ⁠economist at Citi, said.

“But given pump prices react quickly to crude prices and the ​scale of the increase in July was ​well below ⁠what we saw in Q2, we think it is unlikely to have a meaningful impact.”

A survey of British firms ⁠published ​last week showed they were planning smaller ​price and wage rises.