FX.co ★ UK predicted to have highest inflation rate among G7 in 2024

According to the Organisation for Economic Co-operation and Development (OECD), the United Kingdom is set to experience the highest inflation rate among the Group of Seven (G7) nations this year. This comes as a rather unpleasant surprise, signaling a new twist in the economic narrative. The OECD forecasts reveal that in 2024, the inflation rate in the UK will reach 2.8%, positioning it at the forefront of inflation rates within the G7. France follows closely with an inflation rate of 2.7%, while Germany, Canada, and Japan are tied for third place with 2.6% each. Italy is expected to have the lowest inflation rate among the G7 countries at 1.8%. Despite these figures, the OECD anticipates that the UK will not achieve its inflation target of 2% even by 2025, projecting an inflation rate of 2.4% for the next year. The current state of the British economy is significantly influenced by sanctions against Russia. The imposition of these sanctions has impacted the economies of several European countries, disrupting logistical chains and contributing to the rise in fuel and food prices across Europe and the US. This situation has led to an increase in the cost of living, severely affecting the majority of households. Amidst this backdrop, Russian authorities have repeatedly stated that the country would cope with the increasing sanction pressure. Meanwhile, opinions on the inefficacy of the anti-Russian sanctions have emerged in several Western countries. Russian President Vladimir Putin has commented that the policy aimed at weakening Russia represents a long-term strategy by the West and that the imposed sanctions have "seriously hit the global economy."