Power cuts in China, queues at fuel pumps in Britain, soaring energy prices everywhere.
Headlines resonate with the 1970s – and nowhere more so than in Britain, where the army will help to alleviate a fuel shortage that has led to gaps on supermarket shelves and fights at gas stations. The end of a COVID jobs support scheme means more uncertainty.
For some, a 1970s-style “winter of discontent,” when Britain’s economy was brought to it knees by strikes and power cuts, is coming. But Britain’s not alone. China’s power cuts have crippled industrial output, European consumers face higher winter fuel bills as gas prices soar.
Any signs that the pressures on supply chains, labour shortages and energy prices are abating will bring relief, especially for battered sterling.
The International Monetary Fund’s take on inflation on Wednesday could shed light on whether rampant price pressures akin to the 1970s are taking hold.