Meeting of the Parliament 26 October 2022
After a period of historically low inflation, and low interest rates, we find ourselves in the middle of an economic crisis in which rising costs of living have hit this country, as well as many others, across a range of goods and services.
That presents a real challenge to Governments at all levels. As members of the Scottish Parliament, we see the consequences first hand across our constituencies and regions. We will all know, from the correspondence we receive and the people we meet, that families and businesses face tough conditions and are feeling the impact of circumstances that are beyond their control.
In his September letter, the governor of the Bank of England set out the factors at play behind the rise in inflation—in particular, the role of Vladimir Putin’s appalling act of aggression against Ukraine and its disastrous consequences, which comes at a key moment in our recovery from the Covid-19 pandemic.
Those are not normal economic forces—in many ways, they are unprecedented—but there is, at least, some cause for optimism. Global wholesale gas prices have fallen and Europe has moved towards greater energy security and resilience.