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  "path": "/money/inflation-higher-us-iran-energy-bill",
  "publishedAt": "2026-03-09T22:37:43.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Oil prices PLUMMET as Donald Trump makes US-Iran war declaration",
    "Rachel Reeves: US-Iran war will 'put upward pressure' on inflation as energy bill fears grow",
    "Evri issues update on undelivered parcels after British courier firm collapses into liquidation",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nThe British Chambers of Commerce (BCC) has issued a stark warning that inflation across the UK will remain stubbornly elevated throughout 2026, with the Middle East conflict blamed for driving up energy costs.\n\nAccording to the business organisation's latest economic assessment, consumer prices index (CPI) inflation is now projected to stand at 2.7 per cent by December, significantly higher than the 2.1 per cent previously anticipated.\n\n###\n\n\n\n\nJanuary's inflation figure stood at three per cent, and the BCC attributes the slower-than-expected decline to rising oil and gas prices stemming from regional instability.\n\nThe geopolitical landscape remains \"highly uncertain\" and has the potential to \"change the economic outlook considerably\" as President Donald Trump signals the war will come to a close soon, the report stated.\n\n###\n\n\n\n\n###\n\n\n\n\nEnergy costs are expected to push inflation higher in the short term before eventually moderating. The BCC has also revised down its growth projections, now anticipating GDP expansion of just one per cent this year compared to an earlier estimate of 1.2 per cent.\n\nThis follows the Office for Budget Responsibility's (OBR) own downgrade last week, which cut the 2026 growth forecast from 1.4 per cent to 1.1 per cent.\n\nLooking further ahead, the business group expects growth of 1.3 per cent in 2027 and 1.1 per cent in 2028.\n\nThe labour market outlook has similarly deteriorated, with unemployment predicted to climb to 5.5 per cent from its current level of 5.2 per cent, a notable increase from the previous forecast of 5.1 per cent.\n\n###\n\n\n\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Oil prices PLUMMET as Donald Trump makes US-Iran war declaration\n  * Rachel Reeves: US-Iran war will 'put upward pressure' on inflation as energy bill fears grow\n  * Evri issues update on undelivered parcels after British courier firm collapses into liquidation\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nDavid Bharier, the head of research at the BCC, said: \"The UK economy remains stuck in a low-growth pattern. Our forecast of just one per cent growth in 2026 reflects weak productivity, subdued investment and cautious consumer spending.\"\n\nMr Bharier warned that the recent escalation of conflict in Iran threatens to derail progress on bringing down inflation, with elevated energy prices potentially keeping the rate \"firmly above the two per cent target\" and prompting the Bank of England to maintain higher interest rates for longer than anticipated.\n\nChancellor Rachel Reeves acknowledged on Monday that the ongoing war between America, Israel and Iran would \"likely to put upward pressure on inflation\" in the months ahead.\n\nPrime Minister Keir Starmer echoed these concerns, stating that prolonged conflict in the region increases the likelihood of economic damage reaching British shores.\n\n###\n\n\n\n\n###\n\n\n\n\nMs Reeves convened with G7 finance ministers to explore a coordinated release of international oil reserves aimed at cushioning the economic blow, though the discussions concluded without any concrete agreement on action.\n\nThe Chancellor addressed Parliament following the G7 meeting, stating that her economic approach would remain \"responsive to a changing world and responsible in the national interest\", while noting that the ultimate impact would depend on how severe and prolonged the Middle East situation becomes.\n\nDespite the gloomy near-term picture, the BCC anticipates some relief on the horizon, projecting inflation to fall to 1.9 per cent by the end of 2027 as energy costs subside and wage growth slows.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards:The GB News Editorial Charter **",
  "title": "Inflation 'to be pushed higher' by US-Iran war and energy bill surge, damning report warns"
}