The Bank of England Governor, Andrew Bailey, has said that there would be a likely rapid fall in inflation this year as the prices of energy declines.
While he spoke to Media Wales, Mr Andrew said that the recently experienced ease of inflation could be a positive sign that “a corner has been turned”.
The Covid pandemic and other crises has caused the likelihood of UK recession
The upsurge of energy cost as the UK economy recovers from covid and the Russian War against Ukraine were major contributors to the inflation – the rise rate of prices
However, the wholesale cost of energy is gradually falling recently, and the bills of energy are more than what has been previously forecasted.
This has resulted to a more optimistic Bank approach. According to Mr. Bailey, “inflation could be an easier path”
Now, employees are in stronger bargaining position for their wage because of the many job vacancies. This could help to push prices up, he said.
The pace at which price rises in the UK has been declining. Compared to the inflation rate in October last year which was 11.1%, the rate has further dropped to 10.7% in November and now 10.5% since December, 2022.
Source: BBC
