UK Inflation Forecast Raised to 4% Amid Global Turmoil
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Economic Forecast Downgrade: The OECD has raised the UK's inflation forecast for 2023 to 4%, an increase of 1.5 percentage points from previous estimates, indicating significant impacts from global economic turmoil that may lead to decreased consumer spending.
- Dismal Growth Outlook: The OECD has also lowered the UK's growth forecast for 2026 to 0.5%, down 0.5 percentage points from earlier predictions, reflecting severe challenges to economic recovery due to rising international oil and gas prices.
- Energy Price Shock: The ongoing conflict in Iran has disrupted energy supplies, leading to heightened energy price pressures in the UK, with the OECD noting that this will raise costs and exacerbate inflationary pressures, particularly given the UK's heavy reliance on energy imports.
- Monetary Policy Challenges: With inflation on the rise, the Bank of England's anticipated interest rate cuts are now in jeopardy, and economists warn that if the conflict persists, rate hikes may be necessary to combat escalating price pressures.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 46.170
Low
6.38
Averages
84.26
High
503.69
Current: 46.170
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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