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Wed, 28 Oct 2026

Wed, 28 Oct 2026 What we now know about the UK economy in four charts

The Office for Budget Responsibility says higher energy prices will impact everything from prices and living standards to economic growth.

* Soaring energy prices and rising inflation will dent growth in the short term and push up living standards
* Interest rates are predicted to rise, making borrowing more expensive
* Chancellor John Healey warns of "real challenges ahead" and announces policies to offer "breathing space" for households
* The Office for Budget Responsibility (OBR) predicts: + Growth will be 1.4% in 2023, down from 2.5% predicted last year + Inflation will peak at 3.8% in 2027, higher than previously forecast + Real household disposable income will grow by less than previously thought, due to increased energy costs
* Those on lower incomes are set to be hit harder by rising energy prices
* The OBR forecasts that interest rates could rise to 4.5% in the coming years
* Higher inflation raises the cost of borrowing for the government and is expected to increase spending on debt interest and welfare payments