UK economy will grow 2% this year but slow next, OBR predicts

Forecaster revises prediction for UK economy in 2017, but says growth will slow next year as inflation hits spending

The UK economy will confound forecasts for a Brexit-related slowdown through 2017, but will then quickly run out of steam as rising prices hit consumer spending, the Office for Budget Responsibility has predicted.

The government's independent forecaster said that since its November outlook, the economy had performed better than expected and it raised its forecast for economic growth this year to 2% from 1.4%. But it predicts growth will be slower than previously thought in 2018, at just 1.6%.

Related: UK economy defies fears of slowdown after Brexit vote