20: More Inflation...

Prices are continuing to rise at their fastest rate for 40 years with fuel and energy prices being the biggest drivers of inflation, but the ONS has said food costs have pushed it up even further. 

The UK is currently dealing with labour unrest not seen for decades - this has been very visible in railways, London Underground, and British Airways. Doctors, teachers, and other public sector workers may yet join in.

Inflation is of course, bad... and so is the cure. Inflation will not magically disappear, so the way to end it is through a period of low output and rising unemployment. This creates stagflation (high inflation + weak growth) that lasts for a prolonged period and will likely require more than one tightening before it ends.

The Organisation for Economic Co-operation and Development (OECD) also forecasts that UK headline inflation will still be running at 4.7% at the end of 2023.