Price rises in the UK are to be the highest among the G7 club of industrialised nations, according to the International Monetary Fund (IMF).

Inflation will be the highest among the club both this year and next, the world’s lender of last resort has said in its World Economic Outlook.

It is an unexpected increase from the IMF’s July forecast.

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There was mixed news elsewhere in the outlook, as the UK’s economic growth forecast, as measured by GDP, was revised up for this year but revised down for next.

Latest data showed inflation stood at 3.8% and is forecast by the Bank of England to reach 4% by the end of the year.

The IMF, however, said it expected inflation to average at 3.4% in 2025, up from its previously predicted 3.2%.

That is forecast to slow to 2.5% this year, higher than the 2.3% anticipated just three months ago.

Growth will be a higher 1.3% this year, thanks to a strong first few months of the year.

Food and services inflation had been particularly high in recent months due to rising wage bills and poor harvests.

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