UK faces 'stagflation' warning amid rising costs and faltering growth

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UK faces 'stagflation' warning amid rising costs and faltering growth

//business-finance.news-articles.net/content/202 .. ning-amid-rising-costs-and-faltering-growth.html

Published in Business and Finance on Friday, January 24th 2025 at 7:00 GMT by MSN
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

UK faces 'stagflation' warning amid rising costs and faltering growth - A survey of businesses found slight growth in the private sector, but companies are still concerned about the prospect of job cuts and inflation.

The UK is facing a potential stagflation scenario, characterized by high inflation and economic stagnation, as warned by economic experts. This situation arises amidst rising costs and faltering economic growth, with the UK's GDP growth expected to be the weakest among the G7 countries in 2024. Factors contributing to this include persistent high inflation rates, which have not been effectively curbed by the Bank of England's interest rate hikes, and a significant increase in the cost of living, particularly in energy and food prices. Additionally, the UK's economic recovery has been hampered by Brexit-related trade disruptions, labor shortages, and global supply chain issues. The combination of these elements has led to a decrease in consumer spending power and business investment, further exacerbating the risk of stagflation.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/uk-faces-stagflation-warning-amid-rising-costs-and-faltering-growth/ar-AA1xN42B ]

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