UK inflation to rise to highest in G7, warns IMF as food costs surge
UK to have highest inflation in G7, IMF predicts
- The International Monetary Fund (IMF) predicts that UK inflation will be the highest among G7 nations in both 2025 and 2026.
- The IMF increased its forecast for UK inflation to average 3.4% in 2025 and 2.5% in 2026, both higher than previous predictions.
- Current UK consumer price index inflation reached 3.8% in July and August, largely attributed to accelerating food, hospitality, labour, and tax costs.
- The IMF upgraded the UK's economic growth forecast for 2024 to 1.3% but simultaneously cut its 2025 prediction to 1.3% due to global trade pressures.
- Chancellor Rachel Reeves welcomed the growth upgrade but acknowledged economic challenges, while Shadow Chancellor Sir Mel Stride criticised the government's handling of the economy.