UK forecast to have highest inflation among richest nations

The UK is expected to have the highest inflation rate among the G7 countries in 2025, with the OECD forecasting it to reach 3.5%. The organization also predicts a slowdown in economic growth to 1.4% this year and 1% in 2023 due to factors like tighter fiscal policy. Chancellor Rachel Reeves may need to increase taxes or cut spending to adhere to government borrowing rules. The current inflation rate in the UK is 3.8%, driven by rising food prices and higher costs passed on to consumers due to increased employer contributions and minimum wage.