application inflation uk

Question 1

Summarise the recent inflation situation in the uk

Answer 1

Cost push inflation form Ukraine crisis and the end of pandemic - labour force supply shortages
10.4%
Length - expectations

Question 2

Using the current inflation context ovulate the importance of the use of effective supply side policies

Answer 2

In context of high cost push inflation and weak productivity growth supply side policies are very important in lowering price levels and easing trend level of growth above 1% some supply side policies may also counter the regressive effects of inflation