The OECD predicts that by the end of the year, inflation would rise from the current 2.2% to 2.7%, meaning that price hikes in the UK will be the highest of any G7 country.

By the end of the year, inflation is predicted to rise from 2.2% in August to 2.7%. The UK's inflation rate is expected to rise at the quickest rate among the G7 by 2025, staying at 2.4%.

The seven biggest, so-called most developed or wealthy economies in the world, which control most of the world's commerce, are collectively known as the G7. They are the United States, the United Kingdom, Japan, France, Germany, Italy, and Canada.

The agency located in Paris went on to say that the inflation of services was "particularly sticky" and "has abated only slowly". It said that in order to return core inflation to the goal, yearly services inflation in the UK would need to decrease by 2.5 percentage points if core goods price inflation were constant.

The UK, on the other hand, is expected to expand at a faster rate than Japan, Italy, and Germany—by 0.7 percentage points this year and 0.2 percentage points in 2025. Now, Britain lags behind the US but equals Canada and France.

Ahead of the October budget, the OECD advised Chancellor Rachel Reeves to consider more extensive tax system reforms in addition to tax increases.

"I know there is more to do, which is why economic growth is the number one mission of this government," Reeves stated, "but faster economic growth figures are welcomed."

(Sources: yahoo.com)