UK inflation and unemployment show economy running hot

Data this morning shows UK inflation is now the highest among any advanced economy in the world at 9%, marking a forty-year high. Around three quarters of the April jump was driven by a sharp climb in utility bills. This is particularly troubling as this will hit the UK's poorest families even harder as they spend a vaster proportion of their income on gas and electricity. This comes in a week where the UK also set another record – the lowest unemployment in nearly half a century. The jobless rate stands at 3.7% in the three months to March however, the UK's workforce remains smaller than it was pre-pandemic due to lower willingness and ability to work and less job seeking.