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    Consumer prices in the U.K. will increase 7.4% this year, and by a further 5.3% in 2023, the IMF said in its World Economic Outlook published Tuesday. Inflation is forecast to be below 3% for every other major advanced economy next year.
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    Consumer prices in the U.K. will increase 7.4% this year, and by a further 5.3% in 2023, the IMF said in its World Economic Outlook published Tuesday. Inflation is forecast to be below 3% for every other major advanced economy next year.
    www.bloomberg.com/news/articles/2022-04-19/u-k …
    While UK inflation, the rate at which prices increase, is expected to fall close to the Bank of England's target of 2% on Wednesday, it is then set to rise a little over the course of the rest of the year, before “durably” settling at the target rate in early 2025, the Fund said.
    www.bbc.co.uk/news/articles/cldd6x6gglxo
     
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    What will inflation look like in the UK next year?Next year inflation is forecast to be much slower to ease than in any other major economy, averaging 5.3% compared with falls to 2.9% in the United States and 2.3% in the euro zone. Britain, like the United States, had also seen a drop in the number of older workers since the pandemic, creating labour shortages, the IMF added.
    What does the IMF report say about the UK economy?“Today’s IMF report shows abig upgrade to the UK’s growth forecast and credits our action to restore stability and tame inflation. “It praises our childcare reforms, the Windsor Framework and business investment incentives.
    Why is the IMF so worried about inflation?Sticky inflation, and especially food price inflation, is the enduring concern. The IMF works to stabilise the global economy and one of its key roles is to act as an early economic warning system. Last year, the fund openly criticised the short-lived plans by the UK government, then led by Liz Truss, for tax cuts.
    What does the IMF say about UK growth?The IMF also goes out of its way to praise UK progress, the Budget, and the response to banking pressures and the prime minister's Northern Ireland Brexit deal. The result is a punchy upgrade within just a few weeks from decline of 0.3% to growth of 0.4%. To be clear, this is closer to zero than normal growth, and definitely not sunlit uplands.
     
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  6. WEBMay 23, 2023 · The IMF forecasts the economy will grow by 1% in 2024, rising to 2% in 2025 and 2026. What is the IMF and why does it matter? It also predicts that inflation will not return to the Bank of...

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