UK stagflation to return after five years of 'lost growth'

Think tank research

The UK is experiencing five years of “lost economic growth” as the threat of stagflation looms over the country, a think tank has warned.

Gross domestic output will not return to 2019 levels until the second half of next year, forecasts from the National Institute of Economic and Social Research found. BoE's Huw Pill: Food prices may never return to pre-inflation levels The think tank's outlook for inflation is slightly higher than the Bank of England, expecting it to reach 5.2% by the end of this year, compared to the central bank's prediction of 4.9%. The BoE then expects inflation to return to its 2% target by Q2 2025, while Niesr predicted inflation will average 2.3% across the year, and will not return t...