The risk of a prolonged period of stagflation in the UK has increased after consumer prices surged more than expected while economic growth slowed to a crawl.
Recent official and informal economic data have fallen short of analysts’ expectations, prompting many to warn about stagflation and even an economic contraction in the second quarter of this year.
It comes as some experts say the government has not done enough to help households with the cost-of-living crisis resulting from soaring consumer price inflation. Opposition parties in parliament have also accused chancellor Rishi Sunak of providing inadequate support to Britons grappling with rising energy and food bills.
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