UK Inflation Expectations Fall as Majority Fear Economic Weakening

The Bank of England's latest quarterly survey on public attitudes to inflation shows that respondents' expectations for future inflation have decreased. The survey, conducted by Savanta from August 2026, found that median one-year, two-year, and five-year ahead inflation expectations were lower compared to the previous Ipsos survey in May 2026.

According to the results, median one-year ahead expectations were 3.2%, down from 4% in May 2026. Two-year and five-year ahead expectations also decreased to 2.9% and 3.2%, respectively, compared to 3.5% and 3.9% in May.

Respondents' views on the impact of inflation on the economy were also notable, with a significant majority (64%) believing that faster rising prices would lead to a weaker economy.