The Blubber

Loneliness and inflation are pushing Gen Z away from dating, per BI.

In a recent analysis of data provided by the Bank of England, Bloomberg discovered a surge in inflation expectations among the youth of the United Kingdom. This is noteworthy as historically, the younger demographic held lower inflation expectations compared to their older counterparts who lived through the period of heightened inflation in the 1970s and '80s.

This shift in inflation expectations could potentially complicate the task of monetary policymakers, as it may influence wage expectations and consumer spending patterns, which in turn could contribute to further price increases.

A recent survey conducted by the Bank of England revealed that approximately two-thirds of the British population anticipates a rise in prices over the coming year. More than half of the respondents expressed doubt that inflation would subside and approach the central bank's 2% target within the next two to three years.

However, when Bloomberg conducted a more detailed analysis of the data, it became evident that young people, in particular, were preparing for the persistence of inflation. Bloomberg's findings indicated that, since the outbreak of the pandemic and Russia's invasion of Ukraine, inflation expectations among Britons aged 16 to 24 have increased more rapidly than in any other age group.

This change in expectations was attributed to the younger generation, known as Gen Z, having experienced inflation during their upbringing, a phenomenon referred to as the "experience effect." Bloomberg's analysis revealed that those between the ages of 16 and 24 were the second most likely age group, after those aged 55 to 64, to exhibit an increase in inflation expectations. The older demographic, consisting of young baby boomers and older Gen Xers, grew up during the inflation crisis of the 1970s when the UK faced inflation rates as high as 25%. They also entered the workforce in the 1980s, a period marked by another surge in the cost of living.

In contrast, millennials and younger members of Gen X, who experienced lower inflation rates close to the Bank of England's 2% target throughout much of their working lives, had previously held lower inflation expectations than Gen Z.

Read more: https://unusualwhales.com/news/gen-z-may-be-left-permanently-psychologically-scarred-by-high-inflation