GeriUK inflation rises to 3.3% as economists warn of 7% peak if Middle East conflict persists

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Sky News Business22.04.2026EconomyUnited Kingdom

UK inflation rises to 3.3% as economists warn of 7% peak if Middle East conflict persists

Capital Economics forecasts headline inflation could top 7% by year-end under adverse scenario, with energy bills and airfares set to surge

inflation uk economy middle east conflict

Hızlı Bakış

UK inflation rose to 3.3% in March from 3% in February, driven by fuel prices, as economists warn of potentially worse to come if the US-Iran conflict continues.
Capital Economics forecasts inflation could hit 7% under an adverse scenario, with energy price inflation peaking at 18.1% in July and airfares rising up to 50%.
The Resolution Foundation warns of a £16bn hit to public finances from a prolonged Middle East conflict.

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UK inflation rose to 3.3% in March from 3% in February, driven by fuel prices, as economists warn of potentially worse to come if the US-Iran conflict continues. Capital Economics forecasts inflation could hit 7% under an adverse scenario, with energy price inflation peaking at 18.1% in July and airfares rising up to 50%. The Resolution Foundation warns of a £16bn hit to public finances from a prolonged Middle East conflict.

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Konularuk economy middle east conflict us-iran war energy prices fuel costs capital economics

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