The UK is forecast to have the highest rate of inflation among the world’s richest economies this year, according to the Organisation for Economic Co-operation and Development (OECD). In its latest outlook, the OECD raised its prediction for UK inflation to 3.5% across 2025, up from a previous estimate of 3.1%, citing rising food prices and higher business costs. Although the rate is expected to ease to 2.7% in 2026, it would still be the second highest in the G7. The OECD has nudged up its forecast for UK GDP growth in 2025 to 1.4%, but expects the economy to slow to just 1% in 2026. UK inflation stood at 3.8% in August, driven by food costs and higher wage bills, and the Bank of England has warned it could climb to 4% before easing.