On Wednesday, the Organization for Economic Co-operation and Development (OECD) reported that this year inflation in the UK will be among the highest of any developed economy.

The organization is forecasting that British inflation, which has only just fallen into the single digit range for the first time since last summer, will be higher in 2023 than in any other G20 member except Argentina and Türkiye.

As energy prices have cooled, headline inflation has been declining in Britain, from April’s reading of 8.7% to the 10.1% in March. However food inflation remains stubbornly elevated. According to the Office for National Statistics, grocery inflation hit 19.1% in April, marking the highest reading in over 45 years.

Although OECD economists predict Britain will narrowly avoid a recession in 2023, it is expected economic growth and incomes will suffer some damage from higher interest rates over the coming months.

In its Economic Outlook, the OECD said, “The high interest burden on public debt and the recent drop in average debt maturity leave the public finances exposed to movements in bond yields.”

The organization predicts that Britain’s economy will grow 0.3% in 2023, and by 1% in 2024, although it cautioned that its forecast includes “significant risks.”

In its forecast it warned that as wholesale energy prices begin to rise again, it will “further squeeze real incomes given the United Kingdom’s high dependence on natural gas. Faster-than-expected resolution of uncertainty regarding future trade relationships is an upside risk.”

UK Chancellor Jeremy Hunt said in response to the OECD report that it showed inflation was still “too high,” and he added that, “we must stick relentlessly to our plan to halve it this year. That is the only long-term way to grow the economy and ease the cost-of-living pressures on families.”

The report concluded that the inflation rate in the UK should average 6.9% by the end of 2023.