{"id":126925,"date":"2026-10-13T13:45:00","date_gmt":"2026-10-13T12:45:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=126925"},"modified":"2026-10-13T13:42:21","modified_gmt":"2026-10-13T12:42:21","slug":"inflation-set-to-hit-households-harder","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/inflation-set-to-hit-households-harder\/","title":{"rendered":"Inflation Set to Hit Households Harder Than Expected as IMF Issues Fresh Warning"},"content":{"rendered":"\n

The latest assessment comes as rising household energy bills place further pressure on living costs. Although the British economy has performed better than previously expected this year, the IMF has warned that prolonged disruption to global energy supplies <\/strong>could affect prices, employment and economic activity.<\/p>\n\n\n\n

Energy and Food Costs Drive Higher UK Inflation Forecasts<\/strong><\/h2>\n\n\n\n

According to the IMF’s October 2026 World Economic Outlook<\/a>, UK consumer price inflation is expected to reach 3.3% this year, compared with its previous forecast of 3.2%. That would place Britain joint second among G7 countries for the highest inflation rate.<\/p>\n\n\n\n

The organisation expects inflation to ease to 2.8% in 2027, although this remains above its earlier estimate of 2.4%. The revised figures reflect continuing pressure from energy <\/strong>and food costs<\/strong> linked to the conflict in the Middle East. Figures from the Office for National Statistics showed that UK inflation reached 3.1% in August. Further increases are anticipated over the coming months as higher household energy bills feed through to consumer prices.<\/p>\n\n\n\n

The Bank of England has indicated that inflation<\/a> could rise to slightly above 4% during the first quarter of 2027, partly because of another increase in the household energy price cap in January. It expects inflation to decline during the remainder of the year.<\/p>\n\n\n\n

The IMF also warned that prolonged fighting or further escalation in the Middle East could keep energy and food prices elevated and volatile. Attacks on energy infrastructure, cyber attacks and extreme weather could intensify those pressures. Globally, consumer price inflation is expected to reach 4.7% in 2026 before easing to 4.1% in 2027. The organisation identified higher commodity prices<\/strong> as a major factor behind the increase.<\/p>\n\n\n\n

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The global economy remains resilient, but that resilience is becoming more fragile and more uneven. Growth is projected at 3.1% in 2026 and 3.4% in 2027, while inflation is expected to reach 4.7%, driven largely by higher energy and food prices. Read the IMF's latest analysis:\u2026 pic.twitter.com\/JkzG2u8FQM<\/a><\/p>— IMF (@IMFNews) October 13, 2026<\/a><\/blockquote>