The Bank of England is watching UK inflation carefully, and the latest official figures show that inflation slowed in April by less than expected to 8.7%.
Britain’s ‘core inflation’ - a measure which doesn’t include volatile components such as energy and food - is the highest of the G7 countries at 6.8% and is going in the wrong direction.
Nationwide building society has warned that rises in mortgage interest rates - closely tied to increases in the Bank of England’s rate that has been raised to try and control inflation - could hit the housing market.
So why is inflation in the UK so stubborn compared to similar countries? Newsnight’s Economics Editor Ben Chu reports.
Larry Elliott's Observer piece picks up on one of the week's salient themes, the level of long-term sickness and the implications of this for the wider macroeconomy. Factor in the loss of migrant workers post-Brexit and it has obvious obligations for growth, inflation and unemployment.
There are now 2.8 million people who are economically inactive, and any future growth is likely to be contingent on getting a number of them back into work. Without this there can't be growth and, I'd argue, the increased strain on public finances will also become problematic.