UK Inflation Expectations Rise Amid Energy Price Concerns

A recent survey conducted by Citi and YouGov has shown that British households expect inflation to rise over both the short-term and long-term. The poll found that expectations for inflation over the next 12 months increased to 4.5% in September from 3.9% in August.

The survey also showed that longer-term inflation expectations rose to 4.3% from 4.1%, indicating persistent concerns about price growth beyond the short term.

The Bank of England is closely monitoring energy-driven inflation risks, as higher energy costs linked to the Iran war could impact expectations and lead to more persistent price pressures.