The United Kingdom is expected to have the highest inflation rate among major economies this year, according to a new forecast released by the Organization for Economic Co-operation and Development on Wednesday.
According to fresh OECD economic projections, the headline inflation rate in Britain was expected to be 6.9% in 2023, higher than the 6.3% in Germany, the 6.1% in France, and the OECD average of 6.6%.
If the forecast is correct, Prime Minister Rishi Sunak will have failed in one of his campaign promises to voters ahead of a national election scheduled in 2024: halving inflation this year.
The OECD, however, expected that Britain’s rate of inflation would decrease to 2.8% in 2024, leaving it lower than both France and Germany.
The persistently high inflation rate in Britain has increased the likelihood that the Bank of England will continue to raise borrowing costs, which might force the economy into a recession it has so far avoided.