UK inflation forecast to average 3.4% in 2027, OBR says

(Corrects attribution in headline to OBR, not Healey)

LONDON, Oct 28 (Reuters) - British inflation is set to average 3.4% in 2027, the country's budget watchdog said on Wednesday following finance minister John Healey's first budget.

The Office for Budget Responsibility expects price growth to peak at 3.75% in early 2027. Inflation then average 2.1% in 2028 and 2029, before reaching 2% in 2030.

British inflation rose more than expected to 3.5% in September, its highest since October 2025, data showed last week, as the surge in energy prices caused by the Iran war gathered steam.

An earlier section of the document showed inflation projections to the nearest half percent.

The OBR revised up its forecasts from its previous ones which were prepared before the Iran war broke out at the end of February and saw inflation at 2% in each year between 2027 and 2030.

(Reporting by David Milliken and Andy Bruce, writing by Yoruk Bahceli, editing by Sam Tabahriti)