British households expect the pace of price rises to tick upwards in the next 12 months according to a Bank of England survey that underscores concerns Chancellor of the Exchequer Rachel Reeves' big-spending budget in October may stoke inflation.
Britons see inflation rising to 3% over the next 12 months, up from 2.7% last quarter and the first increase in expectations since Aug. 2023, according to the quarterly Inflation Attitudes Survey, published on Friday. Inflation was at 2.3% in October. Households also upgraded their expectations for each of the next five years, with a large majority saying they expected the economy to weaken as a result of a faster rise in prices.