OECD Reports UK's Record Inflation Amid Global Pressures
UK growth remains positive but slowing.
Rising food prices, tighter fiscal stance with higher taxes and spending cuts, and US tariffs are key factors.
UK economy grew 0.7% in Q1 and 0.3% in Q2, expected to slow.
OECD raised UK 2025 inflation forecast to 3.5% (0.4pp higher than prior estimate).
Inflation expected to stay above 2.7% in 2026.
Chancellor Rachel Reeves noted stronger growth but acknowledged more work is needed.
Food inflation may stay above 5% in 2026, impacting consumers.
1 month ago