When combined with the CPI inflation rate of 5.4%, the 0.2% m/m fall in GDP in December meant that the economy experienced a taste of stagflation at the end of last year. As it was driven by the Omicron COVID-19 wave which has now faded, the fall in GDP will soon be reversed. But high inflation will be with us for longer and, together with the rise in taxes in April, will restrain GDP growth this year.
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