UK Economy No Longer Looks Like an Outlier

Rewind a few months and some people feared the UK was a global outlier. Core inflation was running at close to 7% in May, in year-on-year terms – almost two percentage points above that in the euro area and the US at that point. Worse, underlying price pressures appeared to be accelerating, while activity remained depressed. Fast forward to today, and the UK no longer stands out, says PIMCO. Granted, in year-on-year terms, core inflation remains higher than in the US and the euro area. But sequentially, inflation is falling sharply, even more so than elsewhere. Meanwhile, the underperformance...