Huw Pill: High levels of inflation will continue to persist in the UK

More than other advanced economies

Valeria Martinez
clock • 2 min read

The Bank of England’s chief economist has warned that high levels of inflation may be more persistent in the UK than in other advanced economies, despite a fall in wholesale energy prices and a looming recession.

In a speech in New York on Monday (10 January), Huw Pill suggested that the "distinctive" context that prevails in the UK - of higher natural gas prices with a tight labour market, adverse labour supply developments and goods market bottlenecks - creates the potential for more persistent inflation. "The risks surrounding inflation persistence will strongly influence my monetary policy position in the coming months," he said, signalling interest rates may have to stay higher for longer. He noted that wholesale natural gas prices may "stabilise or even fall somewhat" in the coming month...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Bank of England commits to economic forecasting overhaul following Bernanke review

Bank of England commits to economic forecasting overhaul following Bernanke review

'Substantial' upgrade programme

Valeria Martinez
clock 12 April 2024 • 2 min read
Ben Bernanke urges Bank of England to upgrade 'out of date' forecasting infrastructure

Ben Bernanke urges Bank of England to upgrade 'out of date' forecasting infrastructure

Publication of ‘alternative scenarios’

Valeria Martinez
clock 12 April 2024 • 3 min read
IMF managing director warns central banks to 'resist' calls for early rate cuts

IMF managing director warns central banks to 'resist' calls for early rate cuts

Banks on ‘final stretch’ of inflation battle

Eve Maddock-Jones
clock 12 April 2024 • 2 min read
Trustpilot