Comparing UK Inflation to US and Germany: Surprising Results and Implications for Interest Rates.

UK inflation is higher than in France, Germany, and the US, with concerns about inflation becoming embedded across the economy and lingering for months to come. The Bank of England may raise interest rates closer to 5% to rein in price pressures. The stubbornness of inflation is a global phenomenon due to the Covid pandemic and Russia's Ukraine war. Some at the Bank of England have pointed to the fact that British producers now face less intensive competition on prices from European firms, which may mean a greater tendency for prices to fall.