The National Institute of Economic and Social Research, a British think tank, has projected that UK inflation will remain above the Bank of England's target until 2029. It raised its 2026 GDP growth forecast to 1.1 percent, up from a previous estimate of 0.9 percent. The average inflation forecast for 2026 was revised up to 3.1 percent from 2.6 percent in June, while the peak is now seen at 3.8 percent in February 2027, down from an April forecast of 4.1 percent. Inflation is expected to return to the target range in 2029, a year later than previously thought. The central bank is expected to hold its policy rate this year and next, but NIESR sees a possibility of a hike from 3.75 percent to 4 percent if energy prices rise further.