Market Insights Q1 2023 – The UK cost of living crisis
Matt Parlour, Insights Strategist, EdenTree Insights Team, looks at where we are and what the current and unfolding events mean for clients.
The return of conflict to Europe has seen commodity prices soar and exacerbated the cost of living crisis for consumers with UK inflation hitting a 40 year high during 2022. Around the world, governments and central banks, still dealing with the economic upheaval caused by the global pandemic, are now having to respond to this new challenge.
While inflation may have peaked, some commentators believe that we are returning to a period of 1970s-style economic conditions with persistently high inflation and lower growth.
What are the main drivers of the inflation that the UK is experiencing, and for how long is inflation expected to remain high? What is the outlook for UK economic growth, and what are the implications for investors? This session will seek to provide practical insight to help you answer these common client questions.
We will also examine the impact of high inflation and slowing economic growth upon asset class performance over the past 12 months and consider what this may mean for investors over the coming year.
Learning objectives of the webinar are to:
• describe what the main drivers of the cost of living crisis are
• explain what this means in terms of the outlook for inflation and economic growth
• summarise what the potential implications are for different asset classes.
