CNBC's UK Exchange newsletter: It's not the 1970s, but the oil shock is still biting hard
Key takeaways
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- The good news is that, according to an assessment by the independent Office for Budget Responsibility, the energy intensity of U.K.
- So even a prolonged rise in energy prices should not see the U.K. economy suffer as it did in that decade.
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CNBC UK Exchange CNBC's UK Exchange newsletter: It's not the 1970s, but the oil shock is still biting hard Published Wed, May 6 20262:49 AM EDTIan King WATCH LIVEKey Points Higher oil and gas prices have already sent CPI to 3.3% and the Bank of England warned last week that this is likely to be higher later this year.That risks so-called "second round" effects in the form of higher wage demands — which could force the Bank to tighten monetary policy.In the meantime, though, businesses and consumers are already suffering.A sign saying "Sorry, No Petrol" on the forecourt of a BP service station during a fuel shortage in London on Feb 9, 1971.Evening Standard | Hulton Archive | Getty ImagesThis report is from this week's CNBC's UK Exchange newsletter. Like what you see? You can subscribe here.
For Britons of a certain age, an oil price shock brings back memories of the 1970s, with food and petrol shortages, the state-imposed three-day working week, power cuts, doing school homework by candlelight, and the resulting increases in both inflation and unemployment.