OBR: UK Inflation Expected to Rise to 3.4% in 2027

MT Newswires · 2d ago
10:25 AM EDT, 10/28/2026 (MT Newswires) -- Inflation in the UK is projected to rise to 3.4% in 2027 from 3.1% in 2026, 0.75 percentage points and 1.5 percentage points higher than previous forecasts, mainly driven by rising energy prices. In early 2027, inflation is expected to remain above the Bank of England's 2% target, reaching a quarterly peak of 3.75%, according to the Office for Budget Responsibility's latest economic and fiscal outlook report published Wednesday. Inflation is then anticipated to drop to 2.1% in 2028 and 2029 amid easing energy prices, before edging down to 2% in 2030.