Published by Global Banking & Finance Review®
Posted on August 22, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleUK's short-term inflation expectations stay at 4% in August, while long-term expectations drop. Bank of England remains vigilant on inflation risks.
(Reuters) -The British public's short-term inflation expectations remain unchanged at 4% in August, according to a survey published on Friday by bank Citi and opinion poll firm YouGov.
The country's longer-term inflation expectations fell to 3.9% from 4.2%, to their level in February, the survey showed.
"The decline in longer-term expectations for last three month also suggests that progress is occurring, even if slowly," Citi analysts said in the research note.
There is still a risk that continued food price inflation could push these figures higher in the coming months, but so far it does not seem to have significantly affected expectations, Citi analysts added.
Earlier this month, the Bank of England cut interest rates but four of its nine policymakers sought to keep borrowing costs on hold due to concerns over high inflation.
The BoE, in the latest monetary policy report, revised up its forecast for a peak in inflation to 4% in September from 3.7% and said it would remain alert to the risk that the increase in prices could push up wage deals and longer-term price pressures.
(Reporting by Angela Christy in Bengaluru, Editing by Franklin Paul)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. They influence economic activity and inflation.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
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