Inflation in Britain will be the highest among G7: what awaits the economy.

Inflation in the United Kingdom will be the highest among major economies

According to The Sun: Experts warn that households in the United Kingdom will face serious financial difficulties. Inflation this year and next will be the highest among the major economies of the world.

Price growth forecasts for 2025 and 2026 have increased compared to previous estimates, which will add additional pressure on family budgets.

This alarming information comes after the International Monetary Fund (IMF) raised its overall growth forecast for the United Kingdom this year but lowered expectations for next year.

Recent data shows that the inflation rate in the United Kingdom stands at 3.8 percent in both July and August, significantly exceeding the target of 2 percent.

Retail specialists believe that food inflation could reach 6 percent by the end of the year.

Meanwhile, IMF economists published a global economic forecast indicating persistent inflation in the United Kingdom and the USA.

IMF Forecasts for the United Kingdom

For the United Kingdom, it is forecasted that inflation this year will be 3.4 percent, higher than previous expectations of 3.2 percent.

Overall, inflation is expected to fall to 2.5 percent next year, but this is also higher than previously anticipated – 2.3 percent, according to IMF data.

The IMF slightly raised its growth forecast for the UK economy this year to 1.3 percent, exceeding the previous forecast of 1.2 percent.

However, for 2026 the economic growth forecast was reduced from 1.4 percent to 1.3 percent.

In general, global growth is projected to be at 3.2 percent this year, despite numerous economic uncertainties and potential sanctions.

“Households and businesses have accumulated consumption and investments in anticipation of rising tariffs,” states the IMF report.

Cabinet member Rachel Reeves noted: “This is the second increase in the growth forecast this year from the IMF.”

She added: “But know that this is just the beginning. For too many people, our economy seems stuck.”

However, shadow chancellor Sir Mel Stride calls out the government for rising living costs.

He stated: “The IMF estimate is a grim reading. Inflation in the UK is now set to be the highest in the G7 this year and next – rising faster than expected due to Rachel Reeves’ election.”

“Since taking office, Labour has allowed living costs to rise, debt to increase, and business confidence to fall to record lows.”

Given the data on persistently rising inflation, Britons may face even greater financial hardships in the coming years. The economic situation will require effective measures to control price growth and maintain stability in society. Time will tell what further steps the government and other economic organizations will take in this challenging situation.