Published by Global Banking & Finance Review®
Posted on June 25, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleUK's long-term inflation expectations reached 4.3% in June, the highest since September 2022, according to a Citi/YouGov survey. Short-term expectations dropped to 3.9%.
LONDON (Reuters) -The British public's expectations for inflation over the longer term have risen in June to their highest since September 2022, a Citi/YouGov survey showed on Wednesday.
Inflation expectations for the five to 10 year-ahead period rose to 4.3% in June from 4.2% in May, while year-ahead expectations fell to 3.9% from 4%.
"These series are continuing to diverge which may raise questions about how well anchored long-term expectations are," Citi analysts said in the research note.
Official data earlier this month showed British consumer price inflation was 3.4% in May - well above its 2% target - and the Bank of England last week forecast it would rise to 3.7% by September and remain around 3.5% for the rest of the year.
(Reporting by Sam Tabahriti; editing by William James)
The survey indicated that the British public's long-term inflation expectations rose to 4.3% in June, the highest level since September 2022.
Year-ahead inflation expectations fell to 3.9% in June from 4% in May, indicating a decrease in short-term inflation outlook.
Citi analysts noted that the divergence between short-term and long-term inflation expectations may raise questions about how well anchored these long-term expectations are.
Official data showed that British consumer price inflation was 3.4% in May, which is significantly above the Bank of England's 2% target.
The Bank of England forecasted that inflation would rise to 3.7% by September, reflecting ongoing concerns about inflation trends.
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