UK Inflation Expectations Surge to Highest Level Since April

Public inflation expectations in the UK have risen to their highest level since April, according to a survey from Citi and YouGov. The survey found that people expect prices to rise by 3.9% over the next 12 months, up from 3.4% in July.

The longer-term expectations for inflation also increased to 4.1%, their highest level since April. This is a change of course after recent falls in inflation expectations.

Citi described this development as 'hawkish', implying that it may indicate rising inflation pressures. However, the bank cautioned against over-interpreting one report and said next month's release would provide more clarity on the trend.