Unemployment is rising, inflation is soaring, and living standards are squeezed. This is what is happening in the UK. The "Guardian" said that the message from the Bank of England is very clear that the UK has returned to the economic winter of the 1970s.

The Guardian did not find any term for stagflation in the central bank's 100-plus pages of monetary policy report, although the central bank has previously said the UK will usher in a period of sluggish growth and rapid price increases. Looking back at the past history, in order to cope with inflation, the British economy may fall into recession.

As in the 1970s, the central bank believes that it is mainly caused by external factors. In 1973, the Yom Kippur War led to nearly 25% inflation in 1975, this time it was the Russo-Ukrainian war. The central bank plans to raise the energy price cap by another 40% in October, bringing the average household's annual bill to £2,800.

The central bank said it was powerless to stop the damage to households and businesses from soaring global energy prices, so it had to choose between fighting inflation or causing a recession. In the end, the central bank chose the middle route, raising interest rates by 25 basis points to 1% in order to maintain economic stability.