Caveat: not an expert.

Well, demand is high and supply is constrained. This has caused a spike in inflation. It’s a good question whether interest rates should be used to counter this. In order to counter this interest rates are going up, this reduces the attractiveness of the stock market causing a crash- as you’ve seen in the main indices. But on top of that inflation is high in energy and Putins war is going to spike food prices. High interest rates also encourage people to save instead of spend which will put a headwind on spending.

So we’re moving into a situation where consumers are going to be spending a lot of their income on mortgages, rent, fuel and food. Whilst the supply chain may ease supply, discretionary spending looks likely to tank.