BoE's Huw Pill: Food prices may never return to pre-inflation levels

Wage demands not driving inflation

clock • 2 min read

Food price inflation is set to stay higher for longer, while falling prices may not be seen again, Bank of England chief economist Huw Pill has said.

During a live Q&A session on Monday (7 August), Pill argued "the days of seeing food prices fall . . . does seem to be something we may not be seeing for a little while yet, if in the future at all". He explained staples such as eggs and milk may see price cuts, but there was no sign of a "transformation" in higher prices. Summer rain dampens retail demand Food price inflation is likely to remain in double digits, at around 10%, at the end of the year before falling further in 2024, he said, remaining much higher than overall inflation. "That is still not a very comfortable leve...

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