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BOE Boss Signals Surging U.K. Inflation Has Further to Go

  • BOE governor expressed concerns about stickier price growth
  • Costs of living crisis could lead to higher unemployment
Andrew Bailey
Andrew BaileyPhotographer: Simon Dawson/Bloomberg

Bank of England Governor Andrew Bailey signaled the U.K.’s inflation outlook is likely to worsen when policy makers complete their forecasts in two weeks, noting a darkening picture on both wages and natural gas prices.

Political tensions over Ukraine and the risk they could lead to persistently elevated gas prices pose “a very great concern” for inflation in the U.K, Bailey told lawmakers on Wednesday, hours after data showed overall consumer prices unexpectedly accelerated to 5.4%, the highest since 1992.