UK Growth Set to Slow Amid High Energy Prices and Inflation

The Organisation for Economic Co-operation and Development (OECD) has upgraded its assessment of the UK's economic performance this year, but warns that growth will slow down next year due to high energy prices and elevated borrowing costs.

The OECD expects global growth to moderate from 2.9% in 2026 to 3% in 2027, with the UK economy expected to grow by 1.1% this year before slowing to 1% in 2027.

Inflation remains a concern for the UK, with consumer price inflation forecast at 3.1% this year and 2.6% next year, above the OECD's previous projections.

The Bank of England is under pressure from energy costs, and policymakers are divided over whether tighter monetary policy may be needed to combat inflation.