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Inflation knocking on door of No 10 Downing St

China Daily | Updated: 2022-12-19 07:40

People walk on a snow-covered pathway near the Tower Bridge, as cold weather continues in London, Britain, Dec 12, 2022. [Photo/Agencies]

The situation facing UK Prime Minister Rishi Sunak is no better, if not worse, than that which his predecessor faced during her brief tenure. From this week until the Christmas break, workers in many sectors will be on strike.

Sunak has held two emergency meetings in an attempt to resolve the disputes. But to no avail.

Nurses, teachers, railway workers, postmen and some civil servants are all on strike this month demanding higher pay, longer paid leave and better welfare amid the unchecked attacks on their spending power and the high inflation that has affected the quality of life of people in the UK.

The UK's inflation hit a 41-year high of 11.1 percent in October. Although it fell slightly in November, it was still 10.7 percent. A recession has become inevitable.

Indeed, since the third quarter of this year, the UK's GDP has shrunk quarter-on-quarter, making the UK the only G7 country that has not yet regained its pre-pandemic output. In contrast, the economies of the United States, France, Germany and even Italy have all expanded.

The current wave of discontent in the UK is being seen as the country's second "winter of discontent" as it recalls the situation in 1979. That may explain why Sunak has chosen to be so tough in dealing with the wave of strikes as he wants to play hardball with the unions, mirroring Margaret Thatcher's hardline attitude during the winter of 1979.

Reportedly, Sunak may also consider introducing tougher anti-strike laws next year, following in the footsteps of the United States. This has provoked more anger among UK workers.

Sunak, who comes from a wealthy family, has no real conception of the hardships many people in the UK are struggling with and he is keen to adopt a tough attitude toward the labor disputes to gain support within his party. This has led some to wonder if Sunak's Cabinet may falter if the labor disputes and inflation cannot be resolved in time.

If the labor disputes remain unresolved, the fate of Sunak's Cabinet will be determined by the direction of UK inflation. The best guess now is that the UK's inflation will start to fall in the early spring of next year.

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