US Diesel Export Ban Threatens to Push UK Inflation Near 5%

A potential US ban on diesel exports could push UK inflation to nearly 5% due to Britain's heavy reliance on imports, according to economists. The warning comes as average pump prices in the UK have topped 2 pounds per litre ($2.7) for the first time.

Forecasters predict a prolonged ban could push prices to 3 pounds and add up to one percentage point to UK inflation. This would strengthen the case for interest-rate hikes by the Bank of England, multiple reports said.