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The UK continues to labour over tackling elevated inflation

Read about global markets and trends in this monthly Investment Outlook.

Published on 04 Aug 20231 minute read

This monthly commentary gives a roundup of global markets and trends.

In this edition:

  • In June, the UK Consumer Prices Index (CPI) inflation came in lower than the consensus expectations but remains higher than the Eurozone or US
  • The UK’s poor inflation performance can largely be traced to energy prices and a labour supply shock following Brexit and the pandemic.
  • While energy prices are falling, the UK’s workforce has recovered far more slowly than other major economies since the pandemic
  • The imbalance between labour supply and demand is likely to lead to higher wages and more interest rate rises may be needed to reduce the risk of overheating
  • Nevertheless, rising investor optimism in  global stocks markets as US interest rates are expected to peak could filter through to British stocks


1-5 Refinitiv/Evelyn Partners

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