From Morningstar: 2025-03-21 10:27:00

The UK is facing stagflation with 3% inflation, 1% above the Bank of England’s target. Growth data is retrospective, and a technical recession would require two quarters of negative GDP. Many organizations have downgraded UK economic growth predictions, and small businesses feel pessimistic.

Stagflation has set in due to government tax increases stifling growth, pandemic effects, and global factors like rising energy costs post-Ukraine invasion. The lack of focus on UK housing costs in discussions about stagflation is concerning, as housing is a fundamental need affecting economic growth and inflation.

In the 1970s, the UK experienced a stagflation crisis with falling growth and rising prices. Today’s housing market differs significantly, with higher prices and population, and a shortage of housing. The lack of discussion on housing costs in the context of stagflation is puzzling and may be due to vested interests.

Stagflation is a real issue in the UK, but the lack of focus on housing costs in discussions is concerning. It’s crucial to have an honest conversation about the impact of housing on stagflation and the economy. Political conflicts of interest and financial disincentives may be hindering meaningful discussions on this critical issue.



Read more at Morningstar: UK Housing Crisis Is the Missing Piece of the…