The UK is forecast to see the highest rate of inflation of the world’s seven richest nations this year, according to an influential global policy group. The Organization for Economic Co-operation and Development (OECD) raised its forecast for UK inflation – the rate at which prices rise – to 3.5% across 2025, the highest in the G7. It increased its forecast for UK growth slightly this year to 1.4%, but the economy is still expected to slow next year. The inflation rate is well above the Bank of England’s target of 2%, and the Bank has predicted the rate will hit 4% before falling back. The OECD expects growth in the UK to slow to 1% next year – unchanged from its forecast in June.