UK faces double whammy
One can hardly envy the UK right now. The country is trying to mitigate the negative consequences of the pandemic-driven crisis as well as the Brexit one. The recent rise in inflation is mainly associated with the withdrawal from the bloc. "Without Government action, it will be the British consumers who will pay the price," Helen Dickinson, the chief executive of the British Retail Consortium, warned.
One of the largest developed economies is facing rapid inflation growth. According to BRC and NielsenIQ, the main reason was a mounting lorry driver crisis. A shortage of drivers was caused by the fact that they were unable to meet regular driver qualification requirements to renew their driver's license. Besides, driving schools are closed due to the coronavirus pandemic. In addition, many migrant truckers had to leave the country after Brexit.
"The Government must act swiftly and rapidly increase the number of HGV driving tests taking place, provide temporary visas for EU drivers, and make changes on how HGV driver training can be funded. Without Government action, it will be the British consumers who will pay the price," Helen Dickinson stressed. "Mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months," she added. The proposed measures may help reduce the shortage of personnel that triggered supply disruptions and a further shortage of goods.
High inflation has become a serious problem for most countries around the world. The jump in consumer prices is attributable to record stimulus programs implemented to boost economic growth. For example, in the eurozone, inflation has risen to the highest level in a decade. According to Eurostat, annual inflation in the euro area may total 3% in August compared with July's 2.2%.