IMF: UK Inflation Surpasses G7 Peers in 2025-2026
Rising wage bills and poor harvests drive higher food and services inflation.
IMF forecasts UK inflation at 3.4% in 2025 (up from 3.2%) and 2.5% in 2026.
Bank of England faces challenges to bring inflation back to 2% target.
Sustained inflation may limit rate cuts, impacting consumers and businesses.
UK growth forecast upgraded to 1.3% for 2025 but trimmed for 2026 due to trade pressures.
3 weeks ago