OECD Cuts UK Inflation View to 3.1%, Lifts 2026 Growth to 1.1% on Support
Updated
Updated · The Guardian · Sep 23
OECD Cuts UK Inflation View to 3.1%, Lifts 2026 Growth to 1.1% on Support
3 articles · Updated · The Guardian · Sep 23
Summary
The OECD sharply lowered its 2026 UK inflation forecast to 3.1% from 3.7%, saying price rises have been weaker than expected.
It also raised its 2026 UK growth forecast to 1.1% from 0.9% in June, citing newly announced government support measures expected to bolster consumer spending.
Andy Burnham's government cut VAT on electricity bills after taking office in July and has signaled more household relief could come in next month's budget.
The brighter outlook comes despite sharply higher UK borrowing costs, as global bond-market turmoil and conflict-driven oil supply disruptions have kept pressure on inflation and public finances.
The OECD update follows its separate downgrade of UK 2027 growth to 1.0%, while IMF chief Kristalina Georgieva urged advanced economies to curb debt as servicing costs climb.