UK inflation to remain above target due to energy prices

Business Mar 10, 2026

The U.S.-Israel conflict with Iran is making things pricier for the UK with experts warning inflation could stick around 3% by the end of 2026.
The main reason? Energy prices have shot up: oil spiked over $100 a barrel before settling near $89, and gas prices have soared too.
Since the conflict started, oil alone has jumped nearly 20%.

Experts warn of a prolonged inflationary environment

With energy costs rising, everyday expenses in the UK could go up by about 1%, which is more than what was expected before.
This puts extra pressure on people already dealing with higher prices and makes it tougher for leaders to hit their goal of bringing inflation down to 2%.
Plus, moves like cutting interest rates might get delayed while all this uncertainty continues.