The United Kingdom’s “potential output gap” seems to be narrow. UK Labor Productivity has grown above the 2019 peak, Participation Rate it’s larger and better than the United States labour force. Weekly average hours worked are 31.8 less than the United States’ 34.5. UK CPI Index 122.5 and Producers Price Index 133.3 are much higher than GDP Deflator reflecting very high input costs for production in the economy. in hypothesis, narrowing the output gap could then be beneficial also in decreasing inflation by improving aggregate supply.
UK CPI index for All Items first reading in Q1 1960 was 5.60, up to Q2 2022 CPI Index 119.70. In simple math terms, that represents a 1644% increase with a 35.28 sigma. The CPI Index average=53.73, median=58.15.