UK inflation expectations rise to highest level since September 2022

According to the June Citi/YouGov survey, long-term inflation expectations among the UK population (for five to ten years ahead) have increased to 4.3%, the highest level since September 2022. Analysts at Citi note that long-term expectations continue to diverge from short-term ones (one year ahead), which have decreased to 3.9% this month.

This discrepancy is concerning for experts, as it may indicate a decline in public confidence regarding future price stability. As reported earlier by the UK's Office for National Statistics, inflation in the country stood at 3.4% in May, remaining above the Bank of England's target level of 2%.

The central bank forecasts further price growth to 3.7% by September, with subsequent stabilization around 3.5% until the end of the year. This data adds pressure on the regulator when making decisions about interest rates.