Inflation & Prices
Lower Energy Prices Might Help Drive an Increase in Inflation, Says BOE Official
- Policy maker says she doesn’t want to see a recession
- Mann suggests measure to boost supply capacity of economy
Electricity transmission pylons next to a block of residential apartments in St Neots, UK.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Bank of England policy maker Catherine Mann said a slump in energy prices might prompt consumers to spend more on other things, potentially pushing up inflation in other parts of the economy.
The official who sits on the UK central bank’s nine-member Monetary Policy Committee said that lower headline inflation rates coming from falling natural gas and electricity costs “might be good from the standpoint of making households feel more comfortable.”