UK Inflation Expectations Surge Amid Energy Price Spike

A recent survey conducted by Citi and YouGov has revealed that public inflation expectations in Britain have risen to their highest level in months. The poll, which was published on September 28, found that consumers expect prices to rise by 4.5% over the next 12 months, up from 3.9% in August.

This is a significant increase, and one that has caught the attention of the Bank of England. The central bank is closely monitoring inflation expectations, particularly in light of the recent surge in energy prices caused by the Iran war.

The longer-term outlook for inflation also appears to be increasing, with consumers expecting price growth of 4.3% over a more extended period, up from 4.1% in August.