Economics Observatory | Questions and answers about coronavirus and the UK economy

What would it take to level up the UK?

The government’s levelling up agenda seeks to reduce disparities across the UK. Policies to boost economic performance will need to attract workers and firms away from London and the South East and improve opportunities in ‘left-behind’ places – but success depends on significant investment.

Talking Economics

Our first annual conference took place in Bristol on 17-19 November 2021. Click here to see the full programme and listen back to the talks.

News

Summer of discontent

UK inflation has reached a level not seen in four decades. Rail workers are striking; and teachers and NHS staff will soon be asking for pay increases that keep up with rising prices. With no signs of easing in the UK’s cost of living crisis, the economic outlook is bleak.

Banks & financial markets

Why are cryptocurrencies crashing?

The prices of Bitcoin, Ethereum and other cryptocurrencies have been plummeting. While the trigger was changing economic conditions, the root cause of the crash lies in the nature of crypto investments: they lack independent value and require a continuous stream of new investors to sustain prices.

Prices & interest rates

What is supply chain inflation and why is it driving up consumer prices now?

The interconnectedness of global supply chains means that when one price goes up, others tend to follow. Increases in labour, energy and transport costs are contributing to inflation around the world, posing difficult policy challenges.

Data stories

Cost of living crisis: what do the latest UK inflation data reveal?

Inflation has reached its highest level in 40 years. Rising prices of food, petrol and household utilities have all contributed. Families on lower incomes are most affected – and as prices continue to go up ahead of wages, the cost of living crisis is set to worsen.

Prices & interest rates

How is the war in Ukraine affecting global food prices?

Russia’s invasion of Ukraine is raising food prices across the world. Developing and emerging economies are being hit hardest due to their reliance on the region for fuel and grain imports. Price hikes in these countries could spur further political turbulence and even violence.

Data Hub

Live and interactive charts and visualisations, making sense of the latest numbers

Lessons from history

Inflation past and present: how have we measured the rising cost of living?

Concerns about the cost of living and the need to measure it stretch back to ancient times. Two centuries of research on constructing price indices suggest that measuring the rate of inflation facing different households, sectors and regions is far from straightforward.

Attitudes, media & governance

Ukraine’s accession to the European Union: what difference would it make?

Existing agreements between Ukraine and the EU have already promoted substantial trade flows. Accession would have bigger implications for freedom of movement of capital and workers – investment inflows and migration outflows. These areas are where negotiations are likely to focus.

Families & households

Retrofitting the UK housing stock: what lessons from Scotland’s tenements?

To improve the efficiency of UK energy use and reduce carbon emissions, one key area for action is the country’s housing stock. The required retrofit is a massive financial and physical programme. An early initiative of this kind in Glasgow’s tenement buildings offers lessons on how to make it work.

Nations, regions & cities

Scottish independence: what are the big economic questions?

Scotland may soon have a second referendum on whether to remain part of the UK. Economic issues will be a key part of the debate – from the fiscal policy institutions needed for an independent country to choice of currency and the future relationship with the European Union.

Data stories

What do the latest UK labour market data mean for real wages?

New data show that earnings have increased in the UK on average. But much of the growth is in sectors that offer bonuses and which have seen workers’ pay return to 100% after the furlough scheme. For many, rising prices are likely to erode any effects of these wage increases.

Data stories

What do the latest UK data reveal about regional GDP?

New quarterly data reveal an uneven recovery across the nations and regions of the UK. Areas reliant on tourism benefited from the easing of lockdown measures in July-August 2021, but challenges remain as the cost of living crisis takes hold, threatening consumer spending up and down the country.

Energy & climate change

Is investing in nature a solution to economic and environmental problems?

Harnessing nature may boost our efforts to tackle climate change. Using these nature-based solutions can also bring economic opportunity and improve human health and wellbeing.

All Answers