Prices are going up around the world, but why does the UK have higher inflation than comparable developed economies?
Much of the recent inflation can be explained by high energy prices.
European nations have generally implemented policies to protect consumers from high energy bills.
For example, France has only allowed electricity prices to rise by 4% this year.
However, the UK government allowed energy prices to rise by 54%.
The prices of goods imported from other countries have also been rising.
The covid pandemic and the war in Ukraine have caused major disruptions to supply chains, delaying deliveries and increasing costs.
But the cost of imports have gone up even more due to the UK leaving the European Union, so there's now extra paperwork and checks at the border, while the pound has fallen in value against the dollar.
Brexit has also led to there being fewer foreign workers seeking jobs in the UK.
This had added to labour shortages, which mean businesses are forced to pay higher wages to attract workers.
This increases costs, so businesses need to raise their prices.
All of these factors push up inflation.
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