UK households forecast to experience the highest inflation of any G7 economy over the next two years 14 April 2026 Responding to the IMF World Economic Outlook today, Simon Pittaway, Senior Economist at the Resolution Foundation, said: “The IMF’s World Economic Outlook shows why British households are more vulnerable than their peers to the economic fallout from war in the Middle East. “In the run up to the conflict, the UK already had the highest level of inflation and interest rates in the G7. And while many people are focusing on the UK having the biggest downgrade to growth this year, households will be more worried about experiencing the highest inflation of any G7 economy over the next two years, with the IMF revising up its forecast to 3.2 per cent in 2026 and 2.4 per cent in 2027 (up from 2.5 to 2.0 per cent). “This bleak outlook shows why the Government needs to tread carefully in how they respond to the conflict. Support for households should be temporary, targeted, and timely in order to protect vulnerable households while avoiding stoking inflation and putting the public finances under even greater strain.”
