🇬🇧 UK Inflation Expectations Jump — Warning Signal for Markets
UK public inflation expectations rose in January, according to the latest Citi / YouGov survey, adding fresh pressure to the Bank of England’s policy outlook.
📊 Why this matters
• Higher inflation expectations can become self-fulfilling
• Makes it harder for the BoE to justify rate cuts
• Keeps yields elevated and financial conditions tight
For markets, rising inflation expectations are a problem — they signal that price pressures aren’t fully anchored yet. That means less policy flexibility, more caution from central bankers, and continued sensitivity across bonds, FX, equities, and crypto.
🧠 Takeaway
Even if headline inflation cools, expectations drive behavior. And right now, UK consumers aren’t convinced inflation is done.
Macro risks remain sticky. 👀
