Diesel Ban Sparks Fears of 5% UK Inflation

UK inflation could hit 5% if President Donald Trump imposes a diesel ban on US exports, economists warn. Motorists in the UK have already seen diesel prices reach £2 ($2.7) per liter for the first time ever.

Forecasters believe a prolonged ban would drive up diesel prices to over £3 per liter, pushing inflation by as much as one percentage point. This would be another major supply shock that could strengthen the case for Bank of England interest-rate hikes.