Price rises in the UK are to be the highest among the G7 club of industrialised nations, according to the International Monetary Fund (IMF). <\/p>\n
Inflation will be the highest among the club both this year and next, the world’s lender of last resort has said in its World Economic Outlook.<\/p>\n
It is an unexpected increase from the IMF’s July forecast.<\/p>\n
Money blog: State pension to rise more than expected<\/a><\/p>\n There was mixed news elsewhere in the outlook, as the UK’s economic growth forecast, as measured by GDP, was revised up for this year but revised down for next.<\/p>\n Latest data showed inflation stood at 3.8% and is forecast by the Bank of England to reach 4% by the end of the year.<\/p>\n The IMF, however, said it expected inflation to average at 3.4% in 2025, up from its previously predicted 3.2%.<\/p>\n That is forecast to slow to 2.5% this year, higher than the 2.3% anticipated just three months ago.<\/p>\n Food and services inflation had been particularly high in recent months due to rising wage bills and poor harvests.<\/p>\n Read more: Economic growth will be a higher 1.3% this year, up from the 1.2% forecast in July, thanks to a strong first few months of the year.<\/p>\n Next year, however, GDP will be 1.4% rather than 1.3% as economies across the world feel trade pressures.<\/p>\n Political reaction <\/p>\n Chancellor Rachel Reeves said: “This is the second consecutive upgrade to this year’s growth forecast from the IMF.<\/p>\n “But know this is just the start. For too many people, our economy feels stuck. Working people feel it every day, experts talk about it, and I am going to deal with it.”<\/p>\n
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