The UK continues to labour over tackling elevated inflation

Read about global markets and trends in this monthly Investment Outlook.

Investment Outlook August Image
Published: 04 Aug 2023 Updated: 04 Aug 2023
Savings and investments IFAs

This monthly commentary gives a roundup of global markets and trends.

In this edition:

  • In June, the UK Consumer Prices Index (CPI) inflation came in lower than the consensus expectations but remains higher than the Eurozone or US.
  • The UK’s poor inflation performance can largely be traced to energy prices and a labour supply shock following Brexit and the pandemic.
  • While energy prices are falling, the UK’s workforce has recovered far more slowly than other major economies since the pandemic
  • The imbalance between labour supply and demand is likely to lead to higher wages and more interest rate rises may be needed to reduce the risk of overheating.
  • Nevertheless, rising investor optimism in global stocks markets as US interest rates are expected to peak could filter through to British stocks.


1-5 Refinitive/Evelyn Partners

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