A Citi/YouGov survey showed UK households' one‑year inflation expectations fell
to 3.8% in June from 4.7% in May, returning to January levels before the Iran
conflict. Longer‑term expectations eased 0.1 percentage point to 3.9%, matching
the six‑month pre‑conflict average. The pullback, which followed a drop in oil
prices, reduces risks of a wage‑price spiral and is easing pressure on the Bank
of England; markets have trimmed bets on an imminent BoE rate hike in recent
weeks.
