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UK experiencing stagflation?
Pound sterling exchange rates had a pretty torrid time last week following weak data releases, with the final blow coming from weaker-than-expected retail sales numbers on Friday alongside by-election results. I am not sure UK politics is playing a large part in things at the moment so I will not dwell on that for now- but the retail sales figures told a story last week, especially after the inflaton reading coming in higher than expected as well. What the data is effectively showing is that inflation in the UK is not currently demand-driven, so we are seeing higher prices alongside weaker demand, this is called ... (full story)