After inflation has reached the highest levels for decades it is set to fall dramatically over the next few months. I’ll explain why this is, why we will not notice much difference and look at whether economists may be proved wrong yet again on inflation. Recently UK government has announced it plans to cut inflation …
A look at the economic impact of falling house prices. Readers Question: Explain why a decrease in the price of houses can lead the economy to experience a recession. In summary: falling house prices reduce consumers’ main form of wealth. This tends to cause lower spending and lower economic growth due to a negative wealth …
Nearly two years after leaving The Single Market, the UK economy is facing a host of problems including high inflation, low investment and falling growth. All problems exacerbated by Brexit. Last month, food inflation rose to 15%, the highest level for decades. This is primarily due to rising energy prices, But, experts at LSE state …
Core Inflation. This is a measure of inflation which excludes certain volatile and seasonal prices. It will be based on the Consumer price index but exclude prices such as Petrol (subject to oil price variations) Food (subject to seasonal variations) Core inflation will also exclude the impact of government excise duties. Core inflation is seen …
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 …
Recently I have been writing a lot about the economic crisis in the UK and the rest of the world. With inflation, rising interest rates and recession, it can all feel a little depressing. So this blog takes a very different view – looking at some of the unsung success stories of the past few …
In September, the Pound plunged to its lowest level on record reaching a low of 1.03 during a day’s trading. The markets were spooked by the government’s unfunded tax cuts and likely £190 bn budget deficit. Investors viewed the Kwarteng/Truss budget as the shortest suicide note in history. Investors sold Sterling and UK bonds, creating …
Earlier this summer the Bank of England warned that the UK was heading into the deepest recession in a generation. Yesterday the Bank of England warned the UK was in the longest recession in a generation – a double gloomy prognosis to go with their record-breaking rise in interest rates by 75 basis points from …