UK inflation could near 5% if Trump halts US diesel exports

  • President Donald Trump could stop US diesel exports, economists warned.
  • Diesel prices reached £2 ($2.7) per liter for the first time ever.
  • A prolonged ban could push UK inflation near 5% and diesel above £3.

UK inflation could approach 5% if President Donald Trump stopped US diesel exports, economists warned after prices reached £2 ($2.7) per liter for the first time ever. Forecasters said a prolonged ban could drive diesel above £3 per liter and raise UK inflation by as much as one percentage point. The resulting supply shock would strengthen the case for Bank of England interest-rate hikes.

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