BRITAIN is forecast to have one of the highest inflation rates in the developed world in what Labour called a “mark of government failure.”

The OECD economic group predicted Britain will have an average inflation rate of nearly 7 per cent in 2023 — the highest in the G7.

Labour’s shadow financial secretary James Murray said: “That the UK will have the highest inflation in the developed world is a mark of government failure.

“Inflation has remained so high in Britain — and hit families so hard — because our economy has been badly weakened by 13 years of Tory economic mismanagement. 

“Labour’s mission to secure the highest sustained growth in the G7 will make our economy stronger and more secure and stop working people paying the price for Tory failure.”

The UK’s predicted inflation rate of average 6.9 per cent this year was somewhat higher than the OECD average.

Clare Lombardelli, the group’s chief economist, said it is due to a lack of participation in the labour market, energy prices, and wider supply chain disruptions.

In its economic outlook forecasts, the OECD also predicted the UK’s economy will grow by just 0.3 per cent of GDP this year and 1 per cent in 2024, adding that the UK’s higher interest rates are likely to dampen economic growth and incomes in the coming months.

It comes after Chancellor Jeremy Hunt said he would back the Bank of England to raise interest rates in the coming months to bring inflation under control, even if it pushed Britain into recession.

Responding to the OECD announcement, he said: “While inflation is still too high, we must stick relentlessly to our plan to halve it this year.” 

SNP economy spokesperson Stewart Hosie MP said:  “It is households in Scotland who are paying the price for sky-high inflation and next to no economic growth.

“Energy bills are higher, mortgage bills are increasing and shopping keeps getting more expensive.

“Small independent countries such as Ireland and Norway have higher growth and lower inflation rates than the UK, Scotland can do so much better than being constantly held back by Westminster control.”