IMF upgrades UK growth this year but sees higher-than-expected inflation as energy prices jump

Summary

The International Monetary Fund (IMF) expects the UK economy to grow faster than expected this year, though households are expected to face higher rates of inflation, Sky News reported on Tuesday 13 October. Households will see higher-than-expected inflation as energy prices jump, and UK economic growth is now expected to slow down next year, according to the forecasts reported by The Independent and the Evening Standard. The IMF warned that the UK will suffer the second highest inflation of any G7 country over the next two years, putting Chancellor John Healey's efforts to ease the cost of living at risk, according to City A.M. According to BBC News, energy prices and rates are set to bite in 2027, and the report comes as final preparations are being made for the first Budget under Prime Minister Andy Burnham.

Latest: The IMF said the UK economy will grow faster than expected this year but households face a sharper rise in inflation as energy prices jump, with growth expected to slow next year and the UK set for the second highest inflation in the G7 over the next two years.

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