Energy surge caused by conflict in Iran may push UK inflation up by 1% this year, according to OBR

Rising Energy Costs May Push UK Inflation Higher, Warns OBR

According to the Government’s official economic forecaster, a prolonged increase in energy prices resulting from the ongoing conflict involving the US, Israel, and Iran could cause UK inflation to finish the year up to one percentage point above current projections.

Professor David Miles, who serves on the Office for Budget Responsibility’s budget responsibility committee, emphasized to Members of Parliament on the Treasury Committee that the repercussions of the conflict could have a “notable” and “highly unwelcome” effect on prices in the UK.

Following the release of updated forecasts alongside the Chancellor’s spring statement, Professor Miles noted that oil prices are presently around 20% higher than before the escalation.