High Inflation 'Leaves UK Economy Trailing Europe'

THE UK economy will grow by a worse-than-expected 0.6 per cent next year, analysts forecast yesterday - but the eurozone is tipped to enjoy one per cent growth at the same time

- Graham Hiscott

Economists at data giant Bloomberg slashed their UK estimate from 0.9 per cent growth amid concerns over Britain's stubbornly high inflation.

The updated forecast comes before key inflation data from the Office for National Statistics tomorrow.

Analysts think the consumer prices index measure fell from May's 8.7 per cent to about 8.2 per cent last month.

But that would still be more than four times the Bank of England's target of two per cent, hinting at another rise in interest rates next month.