Ongoing conflict in the Middle East could cause UK inflation to hit 3% by the end of the year, forecasters from the Office for Budget Responsibility (OBR) have warned.
This would be 1 percentage point above the 2% previously forecast by the UK's fiscal watchdog. Speaking at the Treasury Select Committee on Tuesday (10 March), David Miles, member of the Budget Responsibility Committee at the OBR, said the conflict between Iran and the US and Israel is "a very fast moving situation". He added that, assuming no change in the picture of the prices from now on, consumer prices are set to be higher than previously forecast by the end of 2026. "If prices do not change from where they are now, both the spot prices and market expectations of future pri...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
