UK Chancellor Rachel Reeves said in the Autumn Forecast Statement that the Office for Budget Responsibility (OBR) expects the Consumer Price Index (CPI) to be at 2.5% in 2024, up from the 2.2% announced in March.

The OBR sees CPI of 2.6% in 2025, up from the March forecast of 1.5%.

Key takeaways

"OBR forecasts show 2024 GDP growth of 1.1% (March forecast 0.8%)."

"OBR forecasts show 2025 GDP growth of 2.0% (March forecast 1.9%)."

"OBR forecasts show 2029 GDP growth of 1.6%."

"Budget will boost long term growth."

Market reaction

GBP/USD stays under pressure and was last seen losing 0.55% on the day at 1.2945.