British Inflation Forecasts: A Glimpse into the Future

British finance minister Rachel Reeves announced that inflation in Britain is expected to average 3.2% in 2025, according to the Office for Budget Responsibility. The OBR forecast inflation rates of 2.6% for this year, an average of 2.1% in 2026, and a 2% target from 2027 onwards.

British inflation is predicted to average 3.2% in 2025, according to statements made by finance minister Rachel Reeves. These figures are sourced from the Office for Budget Responsibility's latest forecasts.

During her debut budget in October, Reeves noted that the OBR projected a 2.6% inflation rate for the year. Further predictions include an average inflation of 2.1% in 2026, gradually aligning with the government's 2% target by 2027.

The announcement coincides with new data showing a reduction in consumer price inflation to an annual rate of 2.8% by February.

(With inputs from agencies.)