Britain is on course to be the second fastest growing major economy in the world, in a major boost for George Osborne who said it was 'proof our economic plan is working'. The International Monetary Fund predicts the UK economy will grow by 2.7 per cent this year and 2.3 per cent in 2016, beaten only by the United States. It comes as the Tories were buoyed by the news that inflation remains at zero per cent, with food and fuel prices down sharply year on year. Britain is on course to be the second fastest growing major economy in the world, in a major boost for George Osborne. The International Monetary Fund predicts the UK economy will grow by 2.7 per cent this year and 2.3 per cent in 2016, beaten only by the United States . Low oil prices are expected to help bolster steady growth in the UK. In its latest World Economic Outlook, the IMF predicted world growth of 3.5 per cent this year, unchanged from its previous projection in January. Its forecast for UK growth this year remains at 2.7 per cent though for next year it is cut from 2.4 per cent to 2.3 per cent. It said: 'In the United Kingdom, lower oil prices and improved financial market conditions are expected to support continued steady growth.' Chancellor George Osborne told MailOnline: 'These IMF growth forecasts for the UK are further proof our economic plan is working. 'But this growth, and the jobs and security it brings, would all be put at risk with the chaos of an Ed Miliband/Scottish Nationalist government. 'So we must keep on working through our economic plan and finish the job. 'This is the only way to deliver an economy that offers working people security at every stage of their lives.' David Cameron today warned that growth in the UK could be put at risk if the Tories are not returned to power. He urged voters to 'see this plan through and Britain will keep exporting, growing, job-creating, and yes – we'll be back in the black but only if Conservatives are back in Government'. He added: 'The next five years are much, much more important than the past five. Because having rescued our economy and set Britain back on her feet, now is our chance to truly finish the job, to make this a country where those who work hard and do the right thing can enjoy a good life.' David Cameron today warned that growth in the UK could be put at risk if the Tories are not returned to power . The IMF said global expansion this year 'will be driven by a rebound in advanced economies supported by the decline in oil prices'. But global prospects were 'uneven' with growth slipping back in emerging economies. There would be weaker activity for some major oil exporters, with the Russian economy - also hit by tensions over Ukraine - expected to shrink by 3.8 per cent this year, worse than the previously estimated 3 per cent. The IMF said that while risks to global growth 'are now more balanced' than six months ago, they 'remain tilted to the downside'. These included the danger of low inflation in countries saddled by high debt, with the warning coming on the same day that official figures showed inflation falling to minus 0.01 per cent in the UK. Inflation remained at a record low of zero per cent for the second consecutive month, official figures revealed this morning . Inflation remained at a record low of zero per cent for the second consecutive month, official figures revealed this morning. It means that in the 12 months to March family living costs have not risen at all – while at the same time people's pay jumped by 1.8 per cent. Prices are being held down by the falling cost of food, fuel and women's clothes, the office for national statistics said this morning. Petrol prices fell by 13.7 per cent over the year to March, but saw a slight increase between February and March. The average petrol price rose by 3.8p per litre between February and March. The biggest price falls came from clothing and footwear which fell by 0.1 per cent between February and March. This is the first time that prices have fallen between February and March since month-on-month inflation was first measured. Normally prices rise as they recover following the January sales period. IMF chief economist Olivier Blanchard said: 'A number of complex forces are shaping the prospects around the world. 'Legacies of both the financial and euro area crises - weak banks and high levels of public, corporate, and household debt - are still weighing on spending and growth in some countries.' The outlook for the US this year has been slashed by 0.5 per cent to 3.1 per cent while for the eurozone it has been upgraded from 1.2 per cent to 1.5 per cent, helped by low oil prices and a weaker single currency amid a 1.1 trillion euro (£790 billion) stimulus programme. The IMF still said conditions were ripe for 'robust US economic performance in 2015' but pointed to risks such as the strong dollar hitting exports and the low oil price suppressing investment in that sector. It said macroeconomic risks to global growth, such as a recession in the eurozone, had slightly decreased, but that financial and geopolitical risks had increased. The latter included below-target inflation in countries with high debt and low growth since the financial crisis, with little room to provide more monetary stimulus. The report said: 'Stagnation and low inflation in advanced economies, notwithstanding the recent upgrade to the near-term growth forecasts for some of these economies, could hamper the recovery.' It said prospects for some economies were 'clouded' by ageing populations, weak investment and lacklustre productivity growth as well as high debt both among governments and in the private sector. The report added: 'Inflation and inflation expectations in most advanced economies are below target and are in some cases still declining - a particular concern for countries with crisis legacies of high debt and low growth, and little or no room to ease monetary policy.' Financial risks could also include a further surge in the US dollar and strong market reactions as 'accommodative' monetary policies supporting recovery - such as low interest rates and money printing - start to be withdrawn. Geopolitical risks included tensions 'stemming from ongoing events in Ukraine, the Middle East and West Africa' which 'could generate regional and global spillover'.
International Monetary Fund says UK economy will grow by 2.7% this year . Only the United States will grow faster among world's biggest economies . New figures show inflation is still at 0%, with food and fuel prices down .