State of the Nation: Impact of inflation continues to grow as prices and cost of living continue to rise

SCDI’s latest State of the Nation briefing for February brings together all of the latest data, forecasts and analysis on the Scottish economy in one place, so you don’t have to.

Key points

  • Interest rates increased to 0.5%.
  • Inflation (CPIH) rose by 4.8% in the 12 months to December 2021, up from 4.6% in November, and well above the Bank of England’s 2% target. 
  • Scotland’s onshore GDP was estimated to have grown by 0.8% in November, with output now back above the pre-pandemic level of February 2020 for the first time.
  • The Finance and Public Administration Committee of the Scottish Parliament warns that the impact of low wages, poor productivity, and changing demographics on income tax receipts could “if they come to pass, put Scotland’s fiscal sustainability at risk”.
  • The RBS Purchasing Managers’ Index signalled continuing growth in economic activity, but at the weakest level for the last 10 months. 
  • Shopper footfall across Scotland declined by 22.8% compared to the same period in 2019 – representing the fifth consecutive month in which the country suffered the deepest decline of the UK nations.
  • The employment rate in Scotland rose to 75.1% of working age adults – 22,000 more than there were in February 2020.

Download the briefing below, which is published in partnership with DailyBusiness.


State of the Nation / February


State of the Nation / January


State of the Nation / December


State of the Nation / November