UK Economic Outlook: Autumn 2021 (Inflation)
In this video Cyrille explains why he thinks UK inflation will hit 5 per cent next year and what it means for the economy. He goes through the factors contributing to inflation, from energy prices to shipping costs. He discusses why the UK economy hits supply constraints earlier than expected. He argues that the Bank of England should raise rates sooner rather than later to prevent a damaging wage-inflation spiral. He concludes by saying what rising inflation means for households’ income.