[Malcolm Armsteen]

Yeah, we're all rich snowflakes.

[The Weeping Angel]

Inflation is down.

[Tubby Isaacs]

It'll go up again, but good news for now.

[Youngian]

It'll go up again

Because of Trump’s tariffs? Not necessarily, a falling Dollar means cheaper commodities that are priced in Greenbacks. And China will be product dumping on the international markets with cheap goods that were destined for the US.

[Killer Whale]

It'll go up again

Because of Trump’s tariffs? Not necessarily, a falling Dollar means cheaper commodities that are priced in Greenbacks. And China will be product dumping on the international markets with cheap goods that were destined for the US.

Because of the increased costs to business of the rises in NI and wages, so the received wisdom goes.

[Tubby Isaacs]

Because of Trump’s tariffs? Not necessarily, a falling Dollar means cheaper commodities that are priced in Greenbacks. And China will be product dumping on the international markets with cheap goods that were destined for the US.

The OBR:

Annual CPI inflation is forecast to rise from 2.5 per cent in 2024 to 3.2 per cent in 2025, 0.6 percentage points higher than forecast in October. Wholesale gas prices are expected to peak at around 130 pence a therm in 2025, which is around 30 per cent higher than forecast in October. Oil prices are forecast to average 74 dollars a barrel in 2025, 4 per cent higher than in October. The resulting increases in the Ofgem price cap, coupled with higher food prices and the increase in regulated water bills, are expected to push monthly inflation up to a peak of 3.8 per cent in July 2025. From 2026 onwards, CPI inflation falls rapidly back to around the 2.0 per cent target as energy prices drop, food price inflation falls, and wage growth eases back from currently elevated rates.

[Tubby Isaacs]

Because of the increased costs to business of the rises in NI and wages, so the received wisdom goes.

These business taxes which are simulataneously leading to reduced wages and higher prices.

[The Weeping Angel]

Rachel from accounts strikes again.

https://www.bbc.co.uk/news/articles/cn092p27xn0o

The UK is set to be the second-fastest-growing of the world's most advanced economies this year, according to new projections from the International Monetary Fund (IMF).

But the IMF also predicts the UK will face the highest rate of inflation in the G7 both this year and next, driven by rising energy and utility bills.

Prices are forecast to rise by 3.4% this year and 2.5% in 2026, but the IMF says higher inflation is likely to be temporary, and should fall to 2% by the end of next year.

UK economic growth rates remain modest at 1.3% for this year and next, but that outperforms the other G7 economies apart from the US in 2025, in a torrid year of trade and geopolitical tensions.

The G7 are seven advanced economies - the US, UK, France, Germany, Italy, Canada and Japan - but the group does not include fast-growing economies such as China and India.

The IMF is an international organisation with 190 member countries. They work together to maintain global economic stability.

In the IMF's forecast for economic growth, external, it predicts the UK will push Canada out of second place, after its trade-war-affected economy was hit by the biggest downgrades for 2025 and 2026. However, Canada is expected to retake second place next year when its economy is forecast to grow at a rate of 1.5%.

Germany, France and Italy are all forecast to grow far more slowly at rates of between 0.2 and 0.9% in 2025 and 2026.

Chancellor Rachel Reeves welcomed the fresh upgrade to the IMF's outlook for the UK's economy.

"But know this is just the start. For too many people, our economy feels stuck," she said.

"Working people feel it every day, experts talk about it, and I am going to deal with it."

But highlighting the inflation forecasts, shadow chancellor Sir Mel Stride said the IMF assessment made for "grim reading".