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The Guardian - UK
The Guardian - UK
Business
Larry Elliott

UK inflation will fall in 2023 but energy bills and taxes will rise as house prices drop. Happy new year

London celebrates the new year with a fireworks show
London’s new year fireworks show. This year may turn out to be less dramatic than 2022 but it does not mean life is going to get any easier. Photograph: Dan Kitwood/Getty Images

War in Europe. Political turmoil. A stagnant economy. Soaring energy bills. The highest inflation rate in more than four decades. Higher interest rates. That was the story of 2022. Truly, the year just gone was – in the words of the late queen – an annus horribilis.

So 2023 will have to go some to match its predecessor for drama. The bookies would, for example, give you relatively long odds on it being another year of three prime ministers and four chancellors of the exchequer.

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