2022 was a turbulent year, both politically and economically. The UK has seen the return of double-digit levels of inflation — levels not seen for almost 40 years. At the same time, both Bank of England bank rate and the effective cost of borrowing have been increasing, and the economy has entered recession.
In late 2021, as economies worldwide began to move out of the Covid-19 pandemic, inflation began to rise. This was partially caused by an increase in demand, as economies opened back up. But it was further sparked by the Russian invasion of Ukraine on 24 February 2022, which disrupted supply chains, adding further pressure on inflation.
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