Published by Global Banking & Finance Review®
Posted on May 29, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleUK inflation expectations dropped to 4.0% in May, while long-term expectations stayed at 4.2%, according to a Citi/YouGov survey.
LONDON (Reuters) -The British public's expectations for inflation over the year ahead fell in May to 4.0% from 4.2%, a Citi/YouGov survey showed on Thursday.
Longer-term inflation expectations, however, remained unchanged at 4.2% for the third straight month, the survey showed.
"This should offer some relief after consecutive months of increasing expectations," Citi analysts said of the lower year-ahead expectations.
"But concerns around the elevated level and the static longer-term series remain," they added.
Data last week showed Britain's inflation rate hit a bigger-than-expected 3.5% in April, its highest reading since January 2024, prompting investors to bet on the Bank of England slowing its already gradual pace of interest rate cuts.
(Reporting by Sachin Ravikumar; Editing by Lisa Shumaker)
The survey showed that the British public's expectations for inflation over the year ahead fell to 4.0% in May from 4.2%.
Longer-term inflation expectations remained unchanged at 4.2% for the third consecutive month.
Data indicated that Britain's inflation rate hit 3.5% in April, which was higher than expected.
Citi analysts noted that the lower year-ahead expectations should offer some relief after consecutive months of increasing expectations.
Concerns persist regarding the elevated level of inflation and the static longer-term expectations.
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