Going for growth has been Rachel Reeves\u2019s mantra since taking office. And she is likely to make the most of the International Monetary Fund\u2019s upgrading of its growth forecast for the UK from 1.2 per cent to 1.3 per cent on October 14 \u2014 making it the second-fastest growing economy in the G7 after America.<\/p>\n
But while the growth rate might look impressive, it counts for little because inflation is so high. The IMF also warned that UK inflation will be the highest<\/a> in the group of advanced economies in 2025 and 2026.<\/p>\n Today\u2019s figures put inflation at 3.8 per cent for the year to September \u2014 the same as last month\u2019s figure (and the month before) and a long way from the 2 per cent target. While the Bank of England is responsible for keeping a lid on inflation, the chancellor is directly responsible for fiscal policy, which affects the economy and, ultimately, prices. <\/p>\n \u2022 Public sector pensions rise causing \u00a32.2bn headache for Reeves<\/b><\/a><\/p>\n Higher food prices have been one of the main drivers of inflation this year. The rise in employer national insurance and the national living wage in April, announced in the budget last year, are partly to blame because they have increased costs for food manufacturers and retailers, which have then been passed on to consumers.<\/p>\n