US Diesel Ban Could Send UK Inflation Soaring

Economists are warning of potentially high inflation in the UK if the US imposes a diesel ban. The prediction is based on the assumption that President Donald Trump would stop exports of diesel, leading to higher prices for motorists.

Diesel prices have already reached £2 per liter for the first time ever, and forecasters expect them to top £3 per liter in the event of a prolonged ban.

This could push up UK inflation by as much as one percentage point, bringing it close to 5% if the ban were to be implemented. Forecasters say this would only strengthen the case for Bank of England interest-rate hikes.