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The OECD's Economic Outlook projects the UK will experience one of the highest inflation rates in the developed world at 6.9% for 2023, surpassing most OECD members except Argentina and Turkey. The UK economy is expected to grow by 0.3% in 2023 and 1% in 2024, but the OECD highlights significant risks, including high public debt interest rates and vulnerabilities from rising bond yields.

Moreover, the UK's reliance on natural gas makes it susceptible to fluctuations in energy prices linked to the ongoing war in Ukraine. Chancellor Jeremy Hunt indicated support for the Bank of England to raise interest rates to control inflation, even if it risks recession, while asserting that government measures to boost growth and investment are in place.