UK faces highest inflation in G7 this year and next, IMF warns

<p>According to fund’s World Economic Outlook, Britain is on course to average 3.4% this year and 2.5% in 2026</p><ul><li><p><a href="https://www.theguardian.com/business/2025/oct/14/us-shares-correction-markets-imf-bonds">US shares risk ‘sharp correction’ but markets seem complacent, IMF warns</a></p></li><li><p><a href="https://www.theguardian.com/business/2025/oct/14/world-economy-trump-tariffs-imf-uk-global-gdp-forecasts">World economy resilient amid Trump tariffs but outlook looks ‘dim’, says IMF</a></p></li></ul><p>Consumers in the UK are expected to suffer the highest inflation in the G7 group of leading economies this year and next, the International Monetary Fund has warned.</p><p>As policymakers gathered in Washington for its annual meetings, the IMF said prices would rise in Britain at a faster pace in 2025 and 2026 than it had originally forecast at its <a href="https://www.theguardian.com/business/2025/jul/29/imf-global-growth-forecast-trump-tariffs-eu-trade-us">last update in July</a>.</p> <a href="https://www.theguardian.com/business/2025/oct/14/uk-faces-highest-inflation-in-g7-this-year-and-next-imf-warns">Continue reading...</a>