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UK to have highest inflation in G7, IMF says
The IMF revised UK inflation upward to 3.4% in 2025 and 2.5% in 2026, driven by rising wages, poor harvests, and higher taxes impacting food and services prices.
- The IMF predicts the United Kingdom will face the highest inflation among G7 economies in 2025 and 2026, placing Britain atop the inflation league table in its World Economic Outlook.
- Rising costs such as wage bills and poor harvests have driven food and services inflation higher in recent months, while retailers say employer taxes and regulatory costs add to price pressure.
- The IMF now forecasts UK inflation to average 3.4% in 2025, up from its July forecast of 3.2%, and to ease only to 2.5 in 2026, above earlier estimates.
- The Bank of England faces a tougher task bringing inflation back to its two per cent target, and analysts warn sustained inflation could constrain rate cuts, weighing on consumers and businesses.
- The IMF upgraded UK growth forecast to 1.3% this year due to strong first-half 2025 activity, but trimmed next-year growth amid global trade pressures and flagged inflation momentum in the UK and United States.
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UK inflation to rise to highest in G7, warns IMF as food costs surge
It came as the IMF increased its UK growth forecast for this year but reduced its prediction for 2026 amid concerns over the labour market. UK inflation is set to surge to the highest in the G7 in 2025 and 2026, according to the International Monetary Fund (IMF). In its latest outlook report, the influential economic body said price inflation in the UK would increase more sharply than expected in both years compared with previous predictions fro…
IMF nudges up UK 2025 growth outlook, sees more inflation
The International Monetary Fund nudged up its growth forecast for Britain this year but trimmed it for 2026 and predicted that the country would record the highest inflation rate among major advanced economies both this year and next.
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Coverage Details
Total News Sources19
Leaning Left5Leaning Right4Center4Last UpdatedBias Distribution38% Left
Bias Distribution
- 38% of the sources lean Left
38% Left
L 38%
C 31%
R 31%
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