Finance
UK inflation expectations fall sharply to 3.7% in November - Citi/YouGov
Published by Global Banking and Finance Review
Posted on November 26, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 26, 2025
2 min readLast updated: January 20, 2026
UK inflation expectations fell to 3.7% in November, according to a Citi/YouGov survey, potentially influencing a December rate cut by the Bank of England.
LONDON (Reuters) -The British public's expectations for inflation over the next 12 months fell to 3.7% in November from 4.2% the previous month, a survey by YouGov for the U.S. bank Citi showed on Wednesday.
Citi said the reading could boost the chances of a December rate cut by the Bank of England, after British inflation slowed last month for the first time since May.
Long-term inflation expectations also fell to 3.9% in November from 4.2% in October, Citi's monthly survey showed.
"If this downgrade is replicated, both over time and across the various inflation expectation surveys, we think it could challenge the idea prevalent in the MPC that expectations are an ongoing barrier to both a lower terminal rate and a faster pace of cuts," Citi economists wrote.
The BoE had paused its quarterly pace of rate cuts earlier this month, over wariness about sticky high inflation, although it was by a narrow margin, with the central bank's Monetary Policy Committee voting 5-4 against cutting rates in November.
Consumer price inflation dropped to 3.6% in October from 3.8% in September, its joint-highest since January 2024, the Office for National Statistics said on November 19.
(Reporting by Muvija M, writing by Sarah Young; Editing by Kate Holton)
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) or the Producer Price Index (PPI).
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 borrowing costs and savings returns.
A rate cut refers to a decision by a central bank to lower the interest rate, making borrowing cheaper and encouraging spending and investment to stimulate the economy.
Consumer price inflation measures the average change over time in the prices paid by consumers for a basket of goods and services, reflecting the cost of living.
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