Berenberg: High energy prices may keep UK inflation elevated

According to Golden Ten Data on April 27, economists at Berenberg Bank stated in a report that higher energy prices triggered by the Middle East conflict may keep UK inflation at around 3% in 2026, above the Bank of England’s 2% target level. However, weaker wage growth in the UK should help ease the risk of high inflation. “Although the Iran war will keep inflation above the target, the UK’s inflation problem is unlikely to remain more severe than in other countries.”