Great Britain

UK inflation jumps to 2.1%, above Bank of England target, as fuel and clothes prices rise – business live

“The unleashing of pent-up demand into economies with reduced capacity is driving inflation across the world. The Bank of England, like the US Federal Reserve and the European Central Bank, believe that supply bottlenecks and rising commodity prices will not last and inflation will ease next year.

“The big question is whether price rises drive wages higher, creating a wage-price spiral. With more than three million people on furlough and unemployment well above pre-pandemic levels that looks unlikely - but not wholly impossible.”

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