Persistently high inflation should not be “blamed” on the behaviour of workers wanting higher wages or companies unduly raising prices, the Bank of England’s chief economist has argued.
Huw Pill, a member of the Bank’s ratesetting monetary policy committee, said there was no use in “pointing fingers and assigning blame to individual parts of the economy” as the UK has suffered longer-lasting inflation than expected this year.
“If we look at the overall share of national income, [the proportion] going to wage earners and going to [corporate] profits . . . hasn’t changed very much,” Pill told an audience at the Citizens Advice Bureau yesterday. The Bank’s latest forecasts show that wage growth in the private sector will be higher than expected this year, after
Enjoy unlimited digital access. £1 for 6 months.
Already a subscriber? Log in
