UK Household Inflation Expectations Soar to 4.5%

Public expectations for inflation in Britain rose sharply in September, according to a survey by US bank Citi and polling firm YouGov. Households now expect prices to increase faster over both the next year and the longer term.

The survey found that expectations for inflation over the next 12 months rose to 4.5% in September, up from 3.9% in August. Expectations for longer-term price growth also increased, reaching 4.3%, which is the highest since June 2025 excluding the March reading.

The Bank of England has been monitoring inflationary pressures and warned that energy prices linked to the conflict involving Iran could push inflation higher in coming quarters. The central bank said UK consumer-price inflation had risen to 3.1% in August.