[Photo Credit: BBC News]
The International Monetary Fund (IMF) has doubled down on criticism of the chancellor’s mini-budget, days after warning it will fuel rising prices.
The body, which works to stabilise economic growth, admitted tax cuts announced by Kwasi Kwarteng would boost growth in the short term.
But it said the cuts would “complicate the fight” against soaring prices.
It expects high prices to last longer in the UK with only Slovakia out of the eurozone set to see higher inflation.
Inflation, which measures how the cost of living changes over time, is expected to peak at about 11.3% before the end of the year in the UK, according to the IMF’s latest assessment of the global economy.
In each of the next two years, it expects price rises will average at about 9% – far above the Bank of England’s target of 2%.
Although the UK economy is set to grow the fastest of the major economies included in the G7 group this year, it is projected to grind to a near-halt next year, with it expanding by just 0.3%.
The most recent figures included in the report by the influential financial institution do not fully, however, take into account the UK chancellor’s recent mini-budget.
