UK inflation reaches 40-year high

The bigger test to the current stagflationary shock in the UK will likely be Chancellor Hunt’s budget statement

16 November 2022

UK inflation as measured by today’s CPI reading remains on fire. The CPI rate of 11.1% in October is showing no signs of abating, up a full percentage point from the previous month and ahead of all expectations again – and let’s not forget it would have been even higher were it not for the UK government’s energy price cap. The bigger test to the current stagflationary shock in the UK will likely be Chancellor Hunt’s budget statement tomorrow which promises further austerity and tax rises across the board. It really does look grim for the economic fortunes of the UK – the promised Brexit “sunlit uplands” have only ever been a continual rolling season of discontent.

Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

Active Thinking

Bank of England governor dovish despite further rate hike

Charles Hepworth

The Federal Reserve slows the pace of rate hikes to 25 bps

Charles Hepworth

Mixed messaging from the US on growth

Charles Hepworth

Charles Hepworth Blog