British households expect the pace of price rises to accelerate over the next 12 months, according to a Bank of England survey which highlights the concerns of the Chancellor of the Exchequer. Rachel ReevesOctober’s big spending budget could fuel 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 August 2023, according to the Quarterly Inflation Attitudes Survey, published on Friday . Inflation was 2.3% in October. Households also raised their expectations for each of the next five years, with a large majority saying they expected the economy to weaken due to faster price increases.