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The Guardian - UK
The Guardian - UK
Business
Larry Elliott Economics editor

UK economy’s stagnation increases chances of recession

Fuel tanker, Whittlesey, Cambridgeshire
The ONS said some of the 1% drop in manufacturing output could be attributed to higher fuel prices. Photograph: Paul Marriott/Rex/Shutterstock

Stagflation has two elements to it: weak growth and rapidly rising prices. Britain already has the inflation; it is now getting the stagnation.

To be sure, the main reason behind the 0.3% fall in gross domestic product in April was the scaling back in NHS Covid 19 testing and vaccinations, which alone shaved 0.5 percentage points off growth.

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