The Bank of England has warned the UK is facing its longest recession since records began 100 years ago. The Bank has also announced it has increased interest rates to three percent as it battles rising inflation – the rate at which the cost of goods and services increases.
The government considers anything more or less than two percent inflation “undesirable”. Currently, inflation in the UK is at its highest rate in 40 years at 10.1 percent, as prices for many products including food have surged. Coupled with an expected rise in the UK’s unemployment rate, the country is grappling with an extremely tough economic period.
This is the UK’s second recession in as many years, with the last one occurring in 2020 during the height of the Covid-19 pandemic. But what exactly is a recession?
