Finance
UK Inflation Seen at 2.3% in 2026, Reeves Says
Published by Global Banking & Finance Review®
Posted on March 3, 2026
1 min readLast updated: April 2, 2026
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Published by Global Banking & Finance Review®
Posted on March 3, 2026
1 min readLast updated: April 2, 2026
Add as preferred source on GoogleAccording to budget update remarks by UK Chancellor Rachel Reeves on March 3, OBR forecasts show UK consumer price inflation will average 2.3% in 2026—down from the 2.5% projection made in November—and is expected to reach the Bank of England’s 2% target from 2027. External risks such as surging ene
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.
In November, when Reeves announced a full budget, the OBR said it expected inflation of 2.5% this year.
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.
The OBR said it now expected inflation in 2027 and 2028 of 2.0%, in line with November's forecasts.
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)
Finance minister Rachel Reeves announced the estimates during a budget update speech.
Inflation is expected to be 2.0% in both 2027 and 2028 according to the OBR.
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