EC increases 2010 UK growth forecast to 1.7 pc but warns inflation could rise to 3 pc

The EC has increased its prediction for economic growth in the UK from 1.2 pc to 1.7 pc for 2010 - a sign that the UK could be recovering from recession faster than first anticipated. The revised figures come after the UK experienced its fastest 3 monthly growth rate since 2001. The rate of growth in the UK GDP rose sharply from 0.3% in Q1 to 1.2% in Q2 - more than twice the figure anticipated by the EC last spring. In spite of this good news, the body warned that as well as an increase in the UK's growth forecast, a rise in the country's inflation could also be imminent.