UK Inflation, Unemployment Measure, and Business Pessimism Raise Concerns

UK inflation is expected to fall in line with the rest of the world, driven by a drop in energy bills. The Bank of England predicts a sharp decline in the inflation rate to below 5% in October, bridging the gap between the UK and other regions. However, concerns arise due to changes in the unemployment measure, which complicates the collection and analysis of unemployment data. UK businesses are growing more pessimistic, leading to hiring freezes and staff cuts. The Bank of England Governor, Andrew Bailey, expresses concerns about high wage growth and the weakening economy.