The UK is suffering from the return of the “British disease” of stagflation, a think tank has warned.
The National Institute of Economic and Social Research has predicted that inflation will not fall back to the Bank of England’s 2% target until after 2027, resulting in five years of “lost economic growth”.
Jagjit Chadha, director of the institute, Britain’s oldest independent economics think tank, said the country’s woes had led to the “re-emergence of the British disease” – a reference to the stagflationary trap of the 1970s, when the term was coined.
