Finance
UK public's medium-term inflation expectations stay high in May
Published by Global Banking & Finance Review®
Posted on June 13, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 13, 2025
1 min readLast updated: January 23, 2026
UK's medium-term inflation expectations remain high in May, despite a short-term drop, as per a Bank of England survey ahead of its interest rate decision.
LONDON (Reuters) -The British public's expectations for inflation over the medium term remained at their highest in several years although short-term expectations fell, according to a Bank of England survey on Friday ahead of its interest rates decision next week.
The central bank looks closely at surveys of the inflation expectations among the public and investors for a guide as to how likely people are to seek wage rises or accept higher prices for goods and services.
May's survey showed expectations for inflation in five years' time held at 3.6%, unchanged from February's reading which was the highest since November 2019.
Expectations for inflation in one to two years' time remained 3.2%, the highest since November 2022, while expectations for one year's time dropped to 3.2% from 3.4%.
Britain's Office for National Statistic reported that consumer price inflation rose to 3.5% in April from 2.6% in March.
The BoE survey was based on polling of people aged 16-75 between May 9 and May 13.
(Reporting by David Milliken; editing by Suban Abdulla)
The medium-term inflation expectations in the UK remain at 3.6%, unchanged since February, marking the highest level since November 2019.
Short-term inflation expectations for one year dropped to 3.2% from 3.4%, while expectations for one to two years remained stable at 3.2%, the highest since November 2022.
The Office for National Statistics reported that consumer price inflation rose to 3.5% in April, up from 2.6% in March.
The survey was conducted by the Bank of England, polling individuals aged 16-75 between May 9 and May 13.
The Bank of England closely monitors inflation expectations to gauge how likely people are to seek wage increases or accept higher prices for goods and services.
Explore more articles in the Finance category
