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NIESR raises UK growth forecast but warns persistent inflation remains a significant challenge

LONDON, July 29. The National Institute of Economic and Social Research projected stronger economic growth for the United Kingdom, the institute reported. It cautioned, at the same time, that persistent inflation remains a significant challenge for the economy. Both findings came from the same release, leaving the overall picture improved on one side and unresolved on the other.

By Rafael Okonkwo2 min read
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Key takeaways

  • The National Institute of Economic and Social Research (NIESR) raised its UK economic growth forecast, projecting stronger growth ahead.
  • NIESR warned that persistent inflation remains a significant challenge for the British economy.
  • Both the upgraded growth forecast and the inflation warning came from the same NIESR release, dated July 29 in London.
  • The upward revision reflected improved expectations for UK output, according to NIESR.
  • NIESR's language did not suggest price pressures were easing, indicating the inflation problem has not been set aside.

LONDON, July 29. The National Institute of Economic and Social Research projected stronger economic growth for the United Kingdom, the institute reported. It cautioned, at the same time, that persistent inflation remains a significant challenge for the economy. Both findings came from the same release, leaving the overall picture improved on one side and unresolved on the other.

A higher growth projection

NIESR revised its outlook for British economic activity upward. The upgraded forecast reflected improved expectations for UK output, according to the organization. The direction of the revision was clear: the institute sees stronger growth ahead for the United Kingdom.

Inflation still the outstanding problem

The growth revision came with a caveat. NIESR identified persistent inflation as a significant challenge facing the British economy, the release shows. The institute's language did not suggest that price pressures were easing or the problem fading. In NIESR's assessment, the United Kingdom faces a period of stronger projected growth alongside a persistent inflation problem that has not been set aside.

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Frequently asked

What did NIESR change about its UK growth forecast?

NIESR revised its outlook for British economic activity upward, projecting stronger growth ahead for the United Kingdom.

Why did NIESR raise its growth projection?

The upgraded forecast reflected improved expectations for UK output, according to the organization.

What concern did NIESR raise alongside the improved growth outlook?

NIESR identified persistent inflation as a significant challenge facing the British economy, with no indication that price pressures were easing.

Does NIESR believe the UK's inflation problem is fading?

No; NIESR's assessment indicated the persistent inflation problem has not been set aside and was not easing.