The UK’s latest inflation data for August will be released on Wednesday and is predicted to rise from 6.8% to 7%, after falling steadily in recent months.
Clare Lombardelli, chief economist at the OECD, said the UK had “seen slightly higher inflation than previously expected” and that the Bank of England was “taking the right action in raising rates” to tackle it.
The economic theory behind this is that it makes it more expensive for people to borrow money, meaning they will have less excess cash to spend, households will buy fewer things and price rises will ease.
The OECD’s economists also reduced their economic growth forecast for the UK for next year, due to pressure on households and businesses from higher interest rates.
The think tank added that economic activity had “already weakened” in the UK due to the “lagged effect on incomes from the large energy price shock in 2022”.
He added that the OECD’s predictions on economic growth did not take into account recent revisions elsewhere suggesting Britain’s economy had recovered quicker than others from the Covid pandemic.
The original article contains 484 words, the summary contains 181 words. Saved 63%. I’m a bot and I’m open source!
This is the best summary I could come up with:
The UK’s latest inflation data for August will be released on Wednesday and is predicted to rise from 6.8% to 7%, after falling steadily in recent months.
Clare Lombardelli, chief economist at the OECD, said the UK had “seen slightly higher inflation than previously expected” and that the Bank of England was “taking the right action in raising rates” to tackle it.
The economic theory behind this is that it makes it more expensive for people to borrow money, meaning they will have less excess cash to spend, households will buy fewer things and price rises will ease.
The OECD’s economists also reduced their economic growth forecast for the UK for next year, due to pressure on households and businesses from higher interest rates.
The think tank added that economic activity had “already weakened” in the UK due to the “lagged effect on incomes from the large energy price shock in 2022”.
He added that the OECD’s predictions on economic growth did not take into account recent revisions elsewhere suggesting Britain’s economy had recovered quicker than others from the Covid pandemic.
The original article contains 484 words, the summary contains 181 words. Saved 63%. I’m a bot and I’m open source!