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Rachel Reeves will arrive Washington The DC has warned talks at the International Monetary Fund (IMF) that UK inflation will reach the highest levels in the G7 in 2025 and 2026.
chancellor To champion the UK as a place where investors and businesses can count on economic stability during meetings International Monetary Fund And World Bank.
The influential economic body said in its latest report that price inflation in Britain would rise faster than expected in both years from July, compared with previous forecasts.
The IMF raised its UK growth forecast for this year but lowered its prediction for 2026 amid concerns over the labor market.
The IMF also said that Britain is going to be the second fastest growing G7 country this year, with only the US growing faster.
As political leaders and central bank chiefs gather in DC, the Chancellor will stress that adherence to UK financial rules is the foundation for economic growth and international investment.
She will point to the government’s National Wealth Fund as among the steps taken to create an investor-friendly environment in the UK.
Ahead of the visit, Ms Reeves said: “Our plan for transformation is delivering a national renewal built on the rock of economic stability – the foundation of more security, more respect and more opportunity for every part of the UK.
“In Washington I will demonstrate the UK’s commitment to fiscal responsibility while creating the conditions to boost productivity, attract investment and secure our place as a strong and trusted partner in a stable global economy.”
The Chancellor is also expected to attend in Washington ukraine Roundtable meetings to boost investment for the war-torn nation, and meetings with US financial companies to highlight what Britain can offer them.
On Tuesday, the IMF said it expects UK inflation to average 3.4% in 2025, rising from its previous forecast of 3.2%.
Forecasts also showed that inflation in Britain is expected to slow slightly to 2.5% next year, but still up from the 2.3% predicted earlier this year.
This means UK households are expected to face the highest rate of price inflation among all the G7 group of advanced economies in two years.
Meanwhile, the UK economy is expected to grow 1.3% this year, after getting a boost from strong growth in the first half.
This represents an improvement over the IMF’s previous forecast of 1.2%.
However, the IMF has now cut its growth forecast for next year to 1.3% from 1.4% as global trade pressures threaten to hit many economies.
Canada and France They also saw a reduction in their growth projections amid pressure from tariff barriers, while the US saw a slight increase in its forecasts.
The report also raised global growth this year to 3.2% from 3%, with many economies proving more resilient than expected in the face of tariff pressures.
The IMF said growth at the start of the year exceeded expectations as spending stepped up, while many economies also benefited from smaller increases in US tariffs than originally announced.