Test of Long form question

Both global and local factors have contributed to the UK's cost-of-living crisis. According to Bank of England governor Andrew Bailey, about 80% of the causes driving the cost-of-living crisis are global.^[5] These include the various forms of instability the world has experienced in the early 2020s such as the COVID-19 pandemic, a chip shortage, an energy crisis, a supply chain crisis,^[6] and Russia's invasion of Ukraine.^[7] The UK was reported to be among the worst affected among the world's advanced economies.

In 2021, the UK's inflation was less than that of the US, but high US inflation was not generally experienced as a cost-of-living crisis due to the stimulus cheques that had been distributed to American households.^[8] Though in 2022 the cost-of-living crisis was also reported as being a global phenomenon, having impacts that include those living in the US,^[9] across Europe,^[10] and as risking an "apocalyptic" impact for those in the developing world.^[11]

Causes unique to the UK include labour shortages related to foreign workers leaving due to Brexit, and additional taxes on households. Factors that have worsened the crisis since 1 April 2022 include Ofgem increasing the household energy price cap by 54%, an increase in National Insurance and a rise in Council Tax.^[1][5][6] Researchers in the Centre for Economic Performance at the London School of Economics investigated trade flows and consumer prices of food products in the UK and found Brexit increased food prices due to increased red tape when food is imported from Europe. This affected poorer households disproportionately.^[12] Unemployed people in the UK receive lower fiscal support than the average for OECD countries, and UK salaries have not risen substantially since the financial crisis of 2007–2008.^[13]