How the Chancellor Rachel Reeves responds to the inflation shock caused by the Iran situation will be controversial whatever she does, with affordability for the government and who to extend some support to or not.
It seems from recent UK PMI figures released today that the Economic hit will be an early one given that it reduced from 53.7 down to 51.0, bringing things closer to stagnation.
This is largely caused by the surge in fuel costs from the conflict undermining what could’ve been nascent growth. Added to all this is possibility of a couple of interest rate rises from the BoE to top it off.
In short , no has any idea how long the situation will pan out for, given Trump’s unpredictable and erratic nature to decision making. While Europe and the UK are left to come up with support packages to stave off the worst of the hit that an inflation shock will bring.
The New Briton 
Leave a comment