DEVELOPING: UK Braces for Record-Breaking Inflation as OECD Warns of G7 Lead

UK Braces for Record-Breaking Inflation as OECD Warns of G7 Lead The UK is forecast to have the highest rate of inflation among the world's richest nations, according to a new report from the Organization for Economic Co-operation and Development (OECD). The organization predicts UK inflation will reach 3.5% in 2025. This alarming forecast comes as Chancellor Rachel Reeves prepares November's Budget, where she is expected to implement tax hikes or spending cuts to stick to her own borrowing rules. The OECD's warning highlights the UK's struggling economy, which is predicted to slow down next year due to a "tighter fiscal stance". This means either higher taxes or lower government spending will take effect, further exacerbating the economic downturn. Growth in the UK is expected to drop from 1.4% this year to just 1% in 2026, with inflation remaining high at 2.7%. This would still be the second-highest rate among G7 nations. The OECD's updated forecast marks a significant increase from its previous estimate of 3.1% for UK inflation in 2025. This is a developing story and will be updated as more information becomes available. *This is a developing story. Updates will be provided as more information becomes available. Based on reporting from Bbc.*