The IMF warned UK Chancellor John Healey to be cautious in deploying
cost-of-living support, saying broad or prolonged measures could risk a renewal
rise in inflation. It advised indebted countries, including the UK, to confine
relief to targeted, temporary measures to avoid undermining price-stability
efforts. The IMF said UK growth should exceed previous forecasts, projects
average inflation of 3.3% this year and 2.8% in 2027, and judges the UK close to
achieving fiscal sustainability.
