Back to today’s briefing

Story perspectives

UK Inflation Soars to 3.5%, Budget Aims to Reduce Costs

12/2/2025

42 4

Summary

Story summary

The OECD projects UK inflation at 3.5% this year, the highest in the G7.
Inflation is projected to fall to 2.5% in 2026.
Unemployment may rise to 4.9% in 2026 and 5% in 2027.
Chancellor Rachel Reeves said the Budget aims to reduce inflation and living costs.
Shadow Chancellor Mel Stride criticized the policies as risking weaker growth.

1 of 1

Story summary

The OECD projects UK inflation at 3.5% this year, the highest in the G7.
Inflation is projected to fall to 2.5% in 2026.
Unemployment may rise to 4.9% in 2026 and 5% in 2027.
Chancellor Rachel Reeves said the Budget aims to reduce inflation and living costs.
Shadow Chancellor Mel Stride criticized the policies as risking weaker growth.