The U.K. is set to report a headline inflation of 6.9% this year, according to the OECD, marking the highest such level among all advanced economies.

Britain's headline inflation rate was set to be 6.9% in 2023, higher than Germany's 6.3% and France's 6.1% and the OECD average of 6.6%, the group said in a new set of projections on its members' economies published on Wednesday.

The report said inflation was set to be stickier than hoped, with the best performer among the G7 is set to be the US, growing by 1.6% this year before easing to 1% in 2024.

FTSE 100 and European stocks. European stock markets started Wednesday on the back foot amid news that the UK has highest core inflation in G7. In London, the FTSE 100 fell 0.2% a

Inflation was 8.7 per cent in the year to April, down from 10.1 per cent in March but still higher than expected

The OECD's Economic Outlook predicted that inflation in the UK will be higher than nearly any of its other members, expect for Argentina and Turkey, Sky News reported. The UK will grow by 0.3 per cent this year and 1 per cent in 2024, according to the Economic Outlook.

The latest update from the Paris-based body sees risks ahead from energy prices, which could leap substantially again ahead of the coming winter, and rising interest rates.