UK Economy Shows Unexpected Resilience Amid Iran-Linked Energy Shock

A new think tank report reveals that the UK economy has shown unexpected resilience following the energy shock tied to the Iran war.

The study, published just before the Bank of England determines interest rates, forecasts that inflation will remain above target until at least 2029.

The economy's resilience is attributed to its ability to withstand the energy shock, but price growth remains high and demand recovery is slow.

The report emphasizes that the final trajectory of inflation largely depends on developments in energy prices and the overall economic situation.