Speaking to the FT, London Business School’s Dr Linda Yueh is asked whether the UK will still have an inflation problem at the end of 2025.
Dr Yueh said that it is possible that inflation will not be at the two per cent target at the end of 2025, adding that the “larger problem is that the level of prices, in contrast to the rate of inflation, will still be significantly higher than before the pandemic.
“This will constrict household disposable income as more is spent on the same basket of goods and services, which will contribute to a feeling that inflation is still an issue, albeit less of one than when inflation was double digits.”
