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UK inflation to be highest in G7 this year, OECD warns
UK inflation is forecast to reach 3.5% in 2025, the highest in the G7, driven by rising food prices and higher trade costs, while growth slows to 1% in 2026, OECD says.
- The OECD announced on September 23, 2025, that the UK faces the highest inflation level among major economies this year while growth remains positive but slowing.
- This situation results from rising food prices, a tighter fiscal stance with higher taxes and spending cuts, and escalating US tariffs increasing trade costs and uncertainty.
- The UK economy grew by 0.7% in the first quarter and 0.3% in the second but is expected to slow as front-loading of activity ends and tariffs affect investment.
- The OECD raised the UK inflation forecast to 3.5% for 2025, 0.4 percentage points above the prior estimate, and expects inflation to remain above the Bank of England target at 2.7% in 2026.
- Chancellor Rachel Reeves emphasized the stronger-than-expected growth but acknowledged more work is needed, while warnings suggest food inflation could stay above 5% into 2026 with impacts on consumers.
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17 Articles
17 Articles
Coverage Details
Total News Sources17
Leaning Left4Leaning Right3Center4Last UpdatedBias Distribution37% Left, 36% Center
Bias Distribution
- 37% of the sources lean Left, 36% of the sources are Center
37% Left
L 37%
C 36%
R 27%
Factuality
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