Bank of England Monetary Policy Committee member Catherine Mann spoke on Wednesday. She is towards the more hawkish end of the MPC spectrum.
Mann said that the UK has a greater inflation problem than the United States or the euro zone. She pointed to both large headline price rises and growing signs of persistence in underlying pressures.
- said core inflationn, over the medium term, gives a better indication of whether price stability has been achieved
(Note that core CPI rose to its highest since records began in 1992 at 6.8% last month). Back to Mann’s remarks:
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High core inflation is beginning to feed into pricing channels and is
becoming persistent - core inflation was showing signs of being kept high by UK businesses’ ability to push through price rises, as well as increased wages
- headline inflation had also been slower to fall back towards the core rate than elsewhere
- sees a risk of future financial market volatility as the global economy adjusts to higher borrowing costs
BOEs Catherine Mann