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UK economy to grow faster than expected, but households face sharper inflation rise, IMF says
The fund said higher energy costs and interest rates will slow growth next year, while UK inflation is expected to average 3.3% in 2026.
- The International Monetary Fund raised UK inflation forecasts to 3.3% for 2026 and 2.8% for 2027 on Tuesday, projecting Britain will face the joint second-highest inflation rate among G7 nations.
- Escalating conflict in the Middle East is driving sharper price rises, with the IMF warning that prolonged instability could "keep energy and food prices elevated and volatile," weighing on economic growth.
- Britain's GDP is forecast to grow 1.3% this year before slowing to 1.2% in 2027, while unemployment is expected to reach 5.3%, down from a prior prediction of 5.6%.
- Ahead of the October 28 Budget, Chancellor of the Exchequer John Healey faces pressure to find £35bn to avoid public spending cuts, with the Institute for Fiscal Studies warning inflation will erode departmental budgets.
- Conservative Shadow Chancellor Andrew Griffith argued that if Healey "reaches for more tax rises," he is "choosing slower growth and working people will pay for it," urging focus on growth instead.
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Inflation to rise faster than expected in fresh blow to Andy Burnham
Households are set to face a sharper rise in inflation than previously forecast as the conflict in the Middle East propels food and energy costs higher, according to the International Monetary Fund (IMF).
·Glasgow, United Kingdom
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Great Yorkshire RadioUK economy to grow more than expected - but households face sharper rise in inflation, IMF says
The influential global economics body also warned that UK households will face a sharper rise in inflation than previously forecast.
·United Kingdom
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UK economy to grow more than expected – but households face sharper rise in inflation, IMF says
The UK economy is set to grow faster than expected this year, though households are expected to face higher rates of inflation, according to forecasts from the International Monetary Fund (IMF). المصدر: skynews business The post UK economy to grow more than expected – but households face sharper rise in inflation, IMF says appeared first on khbrknews.
IMF sees higher energy prices and interest rates hitting UK growth ...
·London, United Kingdom
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Total News Sources25
Leaning Left3Leaning Right2Center15Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
15%
C 75%
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