LONDON, March 3 (Reuters) - British consumer price inflation is set to average 2.3% in 2026, according to estimates from the Office for Budget Responsibility, finance minister Rachel Reeves said in a
UK Inflation to Average 2.3% in 2026 According to OBR Forecasts
Overview of UK Inflation Forecasts and Economic Outlook
Latest OBR Projections for Inflation
LONDON, March 3 (Reuters) - British consumer price inflation is set to average 2.3% in 2026, according to estimates from the Office for Budget Responsibility, finance minister Rachel Reeves said in a budget update speech on Tuesday.
Comparison with Previous Forecasts
In November, when Reeves announced a full budget, the OBR said it expected inflation of 2.5% this year.
Recent Inflation Trends
Since then, inflation readings have come in lower than expected and is likely to fall close to the Bank of England's 2% target in April.
Long-Term Inflation Expectations
Forecasts for 2027 and 2028
The OBR said it now expected inflation in 2027 and 2028 of 2.0%, in line with November's forecasts.
Potential Risks and Global Factors
Impact of Middle East Conflict on Energy Prices
The watchdog's forecasts were made before the recent escalation of conflict in the Middle East which has pushed up global energy prices and raised concerns among investors about a fresh rise in inflaton.
(Reporting by David Milliken Writing by William Schomberg; editing by William James)
