UK Study: Gen Z's Surging Inflation Fears May Entrench High Prices and Inequality

Research shows inflation expectations are surging more among Gen Z in the UK compared to other generations. This could shape their pay and spending habits in a way that keeps prices high.

Gen Z may have "psychological scars" from experiencing high inflation during formative years, an effect known as the "experience effect." This contrasts with millennials who saw steadier inflation.

If young people feel hopeless about building careers amid high inflation, it can negatively impact society at large.

Rising inflation expectations can feed into a vicious cycle of higher wage demands and earlier spending, further driving up inflation.

Higher interest rates make home ownership much harder for younger generations. Older gens tend to hold more assets vulnerable to inflation.