UK oil shock bites hard as inflation climbs. Higher oil and gas prices have pushed British inflation to 3.3%, with the Bank of England warning worse is coming later this year. The concern is real: wage demands could spike, forcing tougher monetary policy. Unlike the 1970s energy crisis, Britain's economy is more efficient and less energy-intensive than decades past. However, the current surge is still devastating businesses. Electricity prices in the UK averaged $110.56 per megawatt hour in April, far exceeding Germany at $88.98 and France at $44.19. The government's marginal pricing system, where natural gas sets rates for all generators, has created windfall profits for renewables while squeezing industrial users. Energy-intensive manufacturers like Denby Pottery have already collapsed under pressure from soaring costs and wages, signaling broader economic pain ahead.
