Niesr Warns Inflation May Peak 3.8% by February 2027

The National Institute of Economic and Social Research (Niesr) has advised Prime Minister Andy Burnham that he must raise taxes or cut spending to fulfill his pledges on defense and the cost of living. Niesr projects inflation will peak at 3.8% before returning to the Bank of England's 2% target by February 2027. The think tank commented that without the ability to increase borrowing, fiscal choices must be made. This matters for investors as the anticipated rise in inflation may impact monetary policy and government spending strategies.