Inflation has reached a decade high of 4.2 percent, prompting the Bank of England governor to express his concern.

0

Inflation has reached a decade high of 4.2 percent, prompting the Bank of England governor to express his concern.

Andrew Bailey, the governor of the Bank of England, told MPs this week that the economy today is very different and that there is almost no risk of a ‘wage price spiral.’

According to the latest figures from the Office for National Statistics, consumer price inflation hit a decade high of 4.2 percent in October.

The Bank of England, on the other hand, has dismissed talk of the economy returning to the 1970s winter of discontent, when inflation was high and growth stagnant.

On Monday, Bank of England governor Andrew Bailey told the Treasury Select Committee that the economy today is completely different and that there is almost no risk of a “wage price spiral.”

Politicians grilled Mr Bailey on the monetary policy committee’s recent decision not to raise the base rate from its historic low of 0.1 percent to combat rising inflation.

Mr Bailey acknowledged that he is “very concerned about the inflation situation,” but denied claims that he is the Bank of England’s second “unreliable boyfriend,” a moniker first applied to former Bank governor Mark Carney after he issued forward guidance to markets suggesting that he would raise the base rate when unemployment fell to 7%.

He failed to do so.

Mr Bailey was accused of botching the announcement of the latest monetary policy vote to the markets, which were pricing in a small rate hike based on apparent hints from the governor.

He denied misleading the markets, and he and other committee members reiterated their belief that the available economic data at the time of the announcement was insufficient, and the consequences of the end of the furlough scheme had yet to be seen.

However, the Office for National Statistics released better-than-expected labor market data yesterday, showing that the unemployment rate fell by 0.5 percentage points from August to October to 4.3 percent.

The ONS reported 29.3 million people in work in the month after the furlough scheme ended, up 160,000 from September 2021’s revised figure.

With 15 of the 18 industry sectors, the number of job vacancies increased to a new high of 1,172,000 in August to October 2021, an increase of 388,000 from the pre-coronavirus pandemic level of January to March 2020.

UK news summary from Infosurhoy

Inflation has reached a decade high of 4.2 percent, prompting the Bank of England governor to express his concern.

wpcc-script async src=”//www.instagram.com/embed.js”]

Inflation hits a decade high of 4.2percent as Bank of England governor warns of his unease

Article content imageRead More - Featured ImageArticle content image

Inflation hits a decade high of 4.2percent as Bank of England governor warns of his unease

Article content imageRead More - Featured ImageArticle content image

Comments are closed.