Inflation and industrial unrest in UK threaten a timetable of trouble

theguardian.com:

Soaring inflation, an economy falling to the bottom of global league tables, and a summer of strike action ahead. As Boris Johnson attempts to reset the political agenda, the economic backdrop could hardly be worse.

This week the government will face more troubling news, with official figures on Monday expected to show the economy came close to stalling in April as families struggled with a record rise in energy bills. On Tuesday, fresh data will probably confirm wages again failed to keep pace with the cost of living, while the Bank of England is expected to raise interest rates to tighten the screw on household and business borrowing.

To mend a bruised political reputation and avert a recession, the prime minister is said to be planning a major reset speech on the economy soon. However, Johnson faces an additional headache from strike action that could spread into a summer of discontent.

Against a backdrop of high inflation, falling living standards, and severe worker shortages in some sectors, arguments over pay are inevitable. Rail workers plan three days of national strikes this month in the biggest walkout since 1989, as unions demand a fair deal on pay and guarantees against job cuts.

So far, Johnson has sought confrontation, warning that bigger wage deals could threaten a 1970s-style wage-price spiral that would force Threadneedle Street to push up interest rates further. In the midst of the cost-of-living crisis, he also wants to cut more than 90,000 public sector jobs. But beyond the railways, more industrial action could be coming down the track.

NHS workers in England are bracing for a sub-inflation pay deal that would leave nurses suffering a £1,600 real-terms hit to their incomes this year. The government is