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UK Economy Mixed: FTSE Rises Amid Inflation Surge

12/18/2025

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Story summary
  • In 2025, the UK economy showed mixed signals as the FTSE 100 rose over 18% and the FTSE 250 gained about 7%.
  • The retailer WH Smith and the bakery chain Greggs declined.
  • Inflation rose to 3.6% in 2025 due to government policies and higher labor costs.
  • The Bank of England did not cut rates as expected.
  • Unemployment reached 5%, and GDP growth slowed in the second half of 2025.