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The Rest Is Money
60. The economics behind Sunak’s general election gamble with Torsten Bell
May 22, 2024
Torsten Bell from the Resolution Foundation discusses the economic implications of the upcoming general election, focusing on inflation, interest rates, and living standards. They explore the impact of lower inflation on voters, households' shift towards saving, and the uncertainty surrounding interest rates in the current economic landscape.
50:17
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Quick takeaways
- Lowering inflation impacts economic choices during elections, reflecting on the electorate's decisions.
- Real wage growth offers relief, but rising prices on essentials hinder actual living standard improvement.
Deep dives
Inflation and Economic Choices
Inflation figures affect the electorate's economic choices. The recent lowering of inflation to 2.3% brings optimism, but service inflation remains a concern. Real wages are finally growing, providing relief after a period of stagnant wages. The Bank of England's 2% target and interest rate decisions are critical.
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Discover
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