Inflation in the UK has risen further and stayed higher than elsewhere as the UK has experienced the worst of both worlds – a big energy shock (like the euro-zone) and labour shortages (even worse than the US). Admittedly, the upward influence of the energy supply shock will fade fast. But tighter labour market will probably mean UK core inflation stays above that in the US and the euro-zone until late-2024.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services