London, El Sky News — A recent monthly survey conducted by YouGov for Citi shows that UK public inflation expectations for the next 12 months have fallen to 3.7% in November 2025, down from 4.2% in October. The decline comes amid easing consumer price pressures, with official inflation figures for October showing a drop to 3.6%, the first decrease in five months.
Survey Details & Policy Implications
Long-term inflation expectations also fell to 3.9%, from 4.2% last month.
Analysts suggest that the decline could support arguments for a potential Bank of England (BoE) rate cut in December, after the BoE previously postponed reductions due to high inflation concerns. Sustained lower expectations may ease one of BoE’s main barriers to cutting rates namely, concerns that high expectations could perpetuate inflation.
What This Means for Public & Markets
- The drop in expectations provides some relief for households facing cost-of-living pressures, indicating that people and businesses anticipate more manageable price levels ahead.
- For financial markets, this could boost optimism: potential BoE rate cuts may reduce borrowing costs, strengthen purchasing power, and provide stability for consumers and investors.
Economists caution that official inflation data and global dynamics (energy costs, supply chains, global economic conditions) could still influence inflation and monetary policy decisions moving forward
