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2025-09-18 19:39:02
Is the UK mired in stagflation? Is the Autumn Budget its last hope? ⑴ The Bank of England maintained its interest rate decision in line with expectations. Current inflation remains stubbornly at 3.8%, and wage growth has reached 4.7%, maintaining upward pressure on prices. ⑵ The UK has become the most stagflationary economy among developed economies, facing the triple challenges of high inflation, weak growth, and rising unemployment. ⑶ Rising employer costs and tax increases are exacerbating inflationary pressures and dragging down economic growth. Current fiscal policy is actually amplifying rather than alleviating the risk of stagflation. ⑷ Market focus shifts to the Autumn Budget. If tax increases continue, the Bank of England will face a more complex regulatory environment.
