UK Inflation Forecast to Average 3.4% in 2027

British inflation is projected to average 3.4% in 2027, according to the country's budget watchdog, following Finance Minister John Healey's first budget. The Office for Budget Responsibility expects price growth to peak at 3.75% in early 2027. This forecast comes after British inflation rose more than expected to 3.5% in September, its highest since October 2025, driven by the surge in energy prices from the Iran war.