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U.K. Faces Worst Inflation Shock Among G-7 Nations, IMF Says

  • Global watchdog slashes growth forecast for British economy
  • Outlook underlines balancing act facing Treasury and BOE
A bakery in Weston-super-Mare, U.K.

A bakery in Weston-super-Mare, U.K.

Photographer: Tom Skipp/Bloomberg
Updated on

Britain faces the worst inflation shock of all major advanced economies over the next two years, the International Monetary Fund warned as it slashed its growth forecast.

The global watchdog said the U.K. economy will be around 1% smaller in both 2022 and 2023 than it forecast in January. It blamed the downgrade on the cost of living crisis and slowing investment as interest rates rise to tackle rocketing consumer prices.