Across the world, and specifically in the UK. Consumer prices have jumped 10.4% as a result of the largest food inflation in over 45 years. Cost of living is also increasing at a rapid rate. Food prices have risen 18.2% in February as a result of severe shortages and rationing. There is also a severe rate of inflation in the UK at 11.1%. In addition, interest rates are rising to 4.25%, and continue to increase. But why is this occurring? This can be attributed to Brexit related labor shortages, trade barriers, high energy costs, and poor weather conditions in nations such as Spain and Morocco. This is a real world example of how prices can be such a significant signal for all of the other factors that are going wrong in the economy at the moment. As Britain now stands on its own, away from the EU, it is more difficult to resolve fluctuations in the market without the assistance from other nations within the EU. Inflation rises, prices increase, and shortages continue as continuous struggle to gain access to the proper resources and energy that they need in order to decrease prices nationally.
https://www.cnn.com/2023/03/22/economy/inflation-uk-surprise-rise-february
2 comments:
It is interesting to see how other nations are handling inflation, and how many nations including the U.S., are all experiencing some sort of inflationary problem.
High inflation seems to be an issue across the world. With energy prices and basic goods increasing, it will be more difficult for consumers. It is interesting how you tied in course material to your post and I agree that prices are a good signal for market conditions. It will be interesting to see how the UK will move forward given current market conditions.
Post a Comment