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

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 ]