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Why is inflation higher in the UK?

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.

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