UK Faces Weak Growth and Highest G7 Inflation, OECD Warns

Britain is on track for the highest inflation rate among G7 nations this year, while its economy risks stagnation despite Chancellor Rachel Reeves’ pledge to make growth her top priority, the OECD has warned.

The influential body forecast UK inflation at 3.5% in 2025, easing to 2.7% in 2026 but still above the Bank of England’s 2% target. Rising food costs, particularly beef, dairy, coffee, and chocolate, remain key drivers of price pressures.

Economic growth is projected at just 1.4% this year and 1% in 2026, lagging behind global averages. The OECD blamed tighter fiscal policies, higher trade costs linked to U.S. tariffs under President Donald Trump, and global uncertainty.

The UK job market also shows signs of strain, with unemployment at 4.7% and vacancies falling steadily. Andrew Bailey, governor of the Bank of England, warned earlier this week that the UK is «not out of the woods yet» on inflation.

Globally, growth is expected to slow to 2.9% in 2026, with Trump’s tariff war increasingly weighing on trade and consumer prices.

Kursiv Uzbekistan reports that ss of September 1, 2025, Uzbekistan had nearly 17,000 enterprises operating with foreign capital, according to figures released by the National Statistics Agency.