UK Faces Worst G7 Inflation, Flat Living Standards, IMF Says (1)

Inflation will be higher in the UK than any other major advanced economy both this year and next, surpassing the US despite the impact of tariffs, according to the International Monetary Fund.

The global economic watchdog warned that UK inflation could be even higher than its latest forecasts that showed consumer prices rising 3.4% this year and 2.5% in 2026. Across the two years, prices will rise 6% - almost a percentage point more than in the US where President Donald Trump’s import barriers are starting to drive up costs for American consumers.

While the IMF expects high inflation ...