UK short-term inflation expectations hit 14-month high — Citi/YouGov survey

According to a Citi/YouGov survey, UK households' short-term inflation expectations surged to their highest level in more than a year in February, indicating the challenges facing the Bank of England (BoE).

The British public's year-ahead inflation expectations rose from 3.5% in January to 3.9% in February. Meanwhile, long-term expectations climbed from 3.7% to 3.9%. The BoE's Monetary Policy Committee attributes such increases to the households responding to the current rise in consumer prices, in particular for food and energy.

In addition, according to the BoE/Ipsos survey, households' inflation expectations for the coming 12 months edged up to 3.4% in February, the highest level since August 2023.

The British regulator said Thursday that its survey among businesses showed a moderate increase in inflation expectations at the start of the year.