The UK is forecast to experience weaker growth and higher inflation due to the impact of the war in the Middle East, according to an influential global policy group.
It means this year the UK is expected to have the second-highest inflation rate among the G7 group of advanced economies - at 4%, the Organisation of Economic Co-operation and Development (OECD) said.
The body has also downgraded forecasts for many of the world's biggest economies due to the US-Israel war with Iran.
A prolonged conflict could trigger "significant energy shortages" globally, it warned, while if the sharp rise in fertiliser prices is sustained crop yields will be impacted and food prices will soar next year.
The OECD's new forecast for UK inflation is up from the rate of 2.5% it had predicted at its previous report in December.
