Beyond Transitory: Structural Drivers of Post-Pandemic Inflation in the UK

Yangxin Wang (), Deqing Ye and Yuxuan Zhang
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Yangxin Wang: Bangor College, Central South University of Forestry and Technology
Deqing Ye: Bangor University, Bangor Business School
Yuxuan Zhang: Bangor College, Central South University of Forestry and Technology

A chapter in Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), 2025, pp 954-960 from Springer

Abstract: Abstract This research investigates the persistent return of high inflation in the UK’s post-pandemic era, arguing that it stems from structural vulnerabilities rather than standard inflation theories. By analyzing quarterly CPIH data from 2015 to 2024, the study conducts a t-test analysis which reveals that post-pandemic inflation is significantly higher and more volatile. The findings indicate that this inflationary environment is not a result of demand overheating, but is driven by underlying supply-side constraints. The core drivers identified include persistent supply chain disruptions, fundamental shifts in the labour market, and compounded external shocks from events like the Russia-Ukraine conflict. The paper concludes that traditional monetary policies have limited effectiveness in addressing these structural imbalances. Therefore, it calls for a strategic shift towards coordinated structural reforms, particularly in energy and trade policy, to effectively manage inflation in the long term.

Keywords: High Inflation; UK Economy; Post-Pandemic; Supply Chain Disruptions; Labour Market; Monetary Policy; Structural Reform; CPIH (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-888-2_93

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