26 November 2025 – London: British public expectations for inflation over the next 12 months dropped to 3.7% in November, down from 4.2% in October, according to a YouGov survey for Citi released Wednesday.

Citi noted that this decline, alongside a slowdown in consumer price inflation to 3.6% in October from 3.8% in September, could increase the likelihood of a Bank of England rate cut in December.

Long-term inflation expectations also fell to 3.9% from 4.2%, highlighting a potential easing of one of the main barriers cited by the Monetary Policy Committee (MPC) to faster rate cuts.

Earlier this month, the BoE narrowly voted 5-4 against a rate cut, reflecting concerns about persistent inflation. Citi economists suggested that if this downgrade in expectations is consistent across surveys and time, it could pave the way for a lower terminal rate and a quicker pace of monetary easing.