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"Rachel Reeves has received yet another major blow in the run up to her make-or-break Budget next month after the International Monetary Fund (IMF) warned UK inflation is set to surge to the highest in the G7 in 2025 and 2026. The beleaguered chancellor has already struggled to foster the economic growth she promised when Labour was elected last year and the latest outlook report suggests UK households are expected to face the highest rate of price inflation among the G7 group of advanced economies,"
The International Monetary Fund forecasts UK inflation will be the highest in the G7 in 2025 and 2026, with inflation averaging 3.4% in 2025 (up from 3.2%) and 2.5% in 2026 (up from 2.3%). Rising food and hospitality prices are cited as drivers of the sharper-than-expected increase. The outlook poses a significant challenge for Chancellor Rachel Reeves ahead of her make-or-break Budget next month, following already disappointing progress toward promised economic growth since Labour’s election. The Independent emphasizes its on-the-ground reporting, refusal to use paywalls, and reliance on reader donations to fund quality journalism.
Read at www.independent.co.uk
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