Inflation warning as UK on course for highest of any G7 country this year and next | Personal Finance | Finance

Britain is set for the highest inflation of the world’s G7 advanced economies this year and next despite the cost of living rising at a far slower pace, according to new forecasts.

The Organisation for Economic Co-operation and Development (OECD) has adjusted its forecasts for the headline UK inflation, revising it downward to an average of 2.8 percent in 2024 and 2.4 percent in 2025. This is a revision from the November forecasts of 2.9 percent and 2.5 percent, respectively.

But this would still see the UK suffer the highest level of inflation of all the G7 countries in both 2024 and 2025.

In 2024, it is predicting UK inflation to be above Canada at 2.6 percent, France at 2.7 percent, Germany at 2.6 percent, Italy at 1.8 percent, Japan at 2.6 percent and the United States at 2.2 percent.

And while the OECD said inflation is projected to be back to target across most G20 countries by the end of next year, it warned about the risk to inflation globally from geopolitical tensions and the Red Sea shipping disruption.