Published by Jessica Weisman-Pitts
Posted on November 1, 2024
1 min readLast updated: January 29, 2026
LONDON (Reuters) – British households’ expectations for inflation over the next 12 months rose again in October, adding to the likelihood that the Bank of England will only cut
LONDON (Reuters) – British households’ expectations for inflation over the next 12 months rose again in October, adding to the likelihood that the Bank of England will only cut interest rates once a quarter, a monthly survey from Citi and YouGov showed on Friday.
The survey showed expectations for inflation in a year’s time rose to 3.3% in October from 3.2%, up from a trough of 2.6% in June. For five to 10 years’ time, expectations rose to 3.8% in October from 3.6% and are 0.8 percentage points above June’s low.
For the Monetary Policy Committee this is likely to provide continued reason for caution, implying quarterly rate cuts in the near-term,” Citi economist Benjamin Nabarro said.
(Reporting by David Milliken, Editing by Paul Sandle)
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 regulating the financial system.
Monetary policy refers to the actions undertaken by a country's central bank to control money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They are influenced by central bank policies and economic conditions.
Explore more articles in the Top Stories category
