In less good news, the OECD projects the U.K. will have one of the highest rates of inflation in the G7 over the next year or so, with the economic forecaster projecting headline inflation — which was 2.2 percent in August — will be 2.7 percent across 2024, and is on course to increase by 2.4 percent next year.
The updated forecast follows the Labour Party’s conference in Liverpool, where Chancellor Rachel Reeves gave a speech aimed at injecting some optimism into the political rhetoric before the Oct. 30 budget, after several gloomy warnings that Labour inherited an ailing economy.
“Faster economic growth figures are welcomed, but I know there is more to do and that is why economic growth is the number one mission of this government,” Reeves said in response to today’s figures. “Next month’s budget will be about fixing the foundations, so we can deliver on the promise of change and rebuild Britain.”