BOE’s Mann Focused on Company Pricing Power to Gauge Inflation

Bank of England policy maker Catherine Mann said she’s focused on the ability of companies to pass on higher costs to customers as a way of understanding where inflation is headed.

What generates inflation are “decisions on the part of firms to raise their prices and willingness on the part of households and consumers to accept those price increases,” Mann said Wednesday at a web event hosted by the Canadian Association for Business Economics. “This to me is the most important question for prospects for inflation going forward.”