Navigating Inflation and Employment Challenges

This chapter examines the recent unexpected rise in core inflation and its implications for interest rate cuts, alongside concerns over the accuracy of Labour Force survey data in measuring UK employment levels. It also explores the intersection of disability benefits, government policies, and the dynamics of the labor market, emphasizing the need for higher workforce participation. Additionally, the discussion highlights the skepticism among British businesses regarding recent budget decisions and the potential impact of regulatory changes, shedding light on the challenges they face in maintaining competitiveness.