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UK Economy Stalls Amid Rising Inflation and Bond Fears

10/3/2025

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Summary

Story summary

The UK faces economic paralysis from fear of bond markets and rising borrowing costs, with an estimated £30-50 billion hole.
Inflation remains above the Bank of England (BoE)'s 2% target, driven by high food prices and disruptions.
Growth is forecast to slow to 0.9% in 2026; inflation persists and Labour's approach is criticized for not addressing prices or wealth taxes.

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Story summary

The UK faces economic paralysis from fear of bond markets and rising borrowing costs, with an estimated £30-50 billion hole.
Inflation remains above the Bank of England (BoE)'s 2% target, driven by high food prices and disruptions.
Growth is forecast to slow to 0.9% in 2026; inflation persists and Labour's approach is criticized for not addressing prices or wealth taxes.