UK Inflation Expectations Soar to 4.5% Amid Energy Price Volatility

Rising inflation expectations in the UK are causing concern for policymakers and investors alike. A recent survey conducted by Citi and YouGov revealed that public inflation expectations rose to 4.5% in September, up from 3.9% in August.

The longer-term inflation expectations also increased to 4.3%, up from 4.1% in the previous month. This suggests that persistent concerns about inflation's outlook may be on the rise.

The Bank of England is closely watching for signs that the jump in energy prices caused by the Iran war could turn into longer-lasting inflation pressures.