UK to suffer highest inflation in G7 this year, says OECD | Global economy
Economic Cooperation and Development Organization (OECD) will be exposed to the highest inflation among the UK’s G7 countries this year.
Among the revived food prices, some retailers accuse the UK government’s increase in the increase in the national insurance contributions of the employer to the employer’s national insurance contributions, OECD predicts that inflation in the UK will be 3.5% in 2025.
Although the figure has imposed the largest tariffs on imports since the 1930s, the figure is far above the US, with 2.7%.
The OECD said British inflation will fall to 2.7% next year and still over 2% target of the Bank of the UK.
The Bank drew attention to the prices such as water and energy bills and NICS Rise to help explain the inflation of the target.
In addition to the inflation warning, OECD suggested that challenging tax and expenditure plans would make economic growth in the UK for the next twelve months.
This year, the latest estimation for the UK increased by 1.3% to 1.4% and predicts stronger GDP growth. However, the projection for next year has not changed at a relatively stagnant 1% – a useless prediction for battle for Rachel Reeves for Rachel Reeves.
The organ said that Britain’s “firmer financial stance” – higher taxes and less government expenditures are expected to focus on the economy. On November 26, Reeves will present the budget to collect taxes.
If OECD’s growth forecasts are correct, in the midst of the package of the UK’s G7 countries – the United States (1.5%), Germany (1.1%) and Canada (1.2%), but Italy (0.6%), Japan (0.5%) and 0.9%) will bring GDP growth rate. This year, Britain is expected to be the second fastest growing country behind the USA.
Labour’s goal before the last year’s general elections was, “securing the highest continuous growth in the G7 – – but exactly in which it was uncertain.
Responding to OECD forecasts, Reeves said: “These figures confirm that the British economy was stronger than the forecasts – the first half of the year was the fastest growth of any G7 economy. However, I know that there is more to build an economy working for working people – and reward working people.”
“The OECD report is a damn decision on Starmer’s weak economic management. The highest inflation in the G7 – all of the Labor Party is directed by the tax hike. Britain needs a strong leadership and open plan.”
Difficult British estimates, OECD’s Paris -based industrialized countries club Trump’s tariffs are slower than expected, but will reach global growth in the coming months, he said.
This year, it increased its projection for global GDP to 3.2% – from 2.9% expected in its last forecast in June.
“Global growth was more flexible than expected in the first half of 2025, especially in many developing market economies,” he said in the temporary economic appearance that “industrial production and trade are supported by higher tariffs”.
However, the OECD, with the current slowdown and reduced influence of exports in many countries, including the United States, OECD, as in 2026, weakening global growth of 2.9% in 2026.
Since Trump’s trade policy announced a wave of “mutual” tariffs to what he calls the “Day of Liberation in April, he changed and changed again after targeting certain countries, regions and products.
OECD estimates that the average tariff for imports to the US is 19.5% at the end of last month: the highest since 1933.
As a result, and also a slower net immigrant – another Trump policy – OECD expects GDP growth to slow down last year from 2.8% to 1.8% this year and 1.5% in 2026. “The effects of higher tariff rates are not yet felt in the US economy,” he said.
Most of the leading economies refused to retaliate to the United States, which can lead to a complete trade war-instead of concessions in the hope of gaining more positive treatment than the White House.
He also emphasized “important risks ına to the global economic appearance in the coming months.
The report said in the report, “more increases in bilateral tariff rates, revitalization of inflationary pressures, increasing concern about financial risks, or significant risk reduction in financial markets, may reduce economic growth according to the base line.”
OECD also emphasized the danger of “high and variable crypto-velocity values”, considering how closely these are with the global financial system.
