Macro Nugget: Is the UK Prepared for the Winter?
There is no shortage of depressing data coming out of the UK in recent quarters. The question is whether we've seen the worst of stagflation. Maybe, but be careful what you wish for
We have recently witnessed a minor surprise in both Swedish and US inflation rates. With the UK next in line, it seems appropriate to take a brief look at the state of the UK economy. To put it bluntly, there’s no easy way to spin it—things are looking rather bleak.
Despite the challenges posed by elevated inflation in the Eurozone, Christine Lagarde is probably not envious of her colleague at the Bank of England.
Chart 1: UK, CPI diffusion
There is no shortage of depressing data coming out of the UK in recent quarters. The question is whether we’ve seen the worst of stagflation. Maybe, but be careful what you wish for
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