Inflation in the UK rose to a 40 year record of 11.1% in Nov 2022 – why is inflation so high and will it come down soon? The last time inflation was so high was in 1981. But, inflation of the 1980s was different in that at least wages were keeping up with inflation. Now …
Since Q1 2009, UK house prices have risen from £149,709 to £270,452 (Q2 2022) – an 81% increase. yet, during that period, median average wages have grown by just over 5%. The two main reasons are limited supply and ultra-low interest rates. Yet, this summer marked a turning point, with higher inflation causing Central …
Since the great financial crash of 2007, the UK economy has struggled. Although the past 15 years have been challenging from a global perspective, compared to many international competitors, the UK has slipped behind. Economic growth before global financial crisis of 2007-09 was 2.7%, the new normal is now closer to just 1.5% and with …
Research shows that historical interest rates have been consistently falling, ever since the first interest rates could be measured in the medieval ages. Although there are cyclical fluctuations, there is a consistent long-term trend for real interest rates to fall at a steady rate. The interesting thing is that this phenomenon has been noticed in …
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …
In 1974, the National Institute for Economic & Social Research made a report about the UK economy, concluding: “It is not often that a government finds itself confronted with a possibility of a simultaneous failure to achieve all four main policy objectives: adequate economic growth, full employment, a satisfactory balance of payments, and reasonable, stable …
In February 2022, western economies imposed sanctions on Russia in response to the invasion of Ukraine. These sanctions were wide-ranging including banning exports of many goods to Russia, freezing Russian foreign reserves and recently the EU has proposed banning Russian oil exports. In response, Russia has retaliated by cutting off gas supplies to Europe causing …
In recent weeks, the Pound Sterling has fallen – losing value against the dollar and other currencies. This year, the Pound has fallen over 16% against the dollar and 7% on a trade-weighted index. In Summary A falling Pound makes: UK imports become more expensive and UK exports more competitive. A falling Pound tends to …