We examine if rising prices are being driven by growth in companies’ profit margins.
15 Aug 2023, 2 min read
Inflation has been above the 2% target since August 2021, averaging 9.3% in the first half of 2023. Inflation was first driven up by pandemic-related supply chain frictions, and then by energy and other commodity prices, exacerbated by the war in Ukraine. The role of external factors in driving UK inflation over the past three years is now fading, but domestic price pressures have strengthened, with core CPI inflation, services price inflation and wage growth close to multi-decade highs.
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