Bank of England (BoE) Governor Andrew Bailey described on Thursday the supply chain issue, energy prices, and food prices as the «big three» factors driving inflation up.
Speaking at a press conference following the BoE’s decision to raise the key interest rate by 50 basis points, Bailey spoke about the process of prices, particularly those of energy, going down from the «ceiling» they have hit and noted there could be one month of a gap before they adjust.
Meanwhile, Deputy Governor Ben Broadbent admitted food prices are playing a «big part» in inflation but stressed it is a global problem and that those will «level off» in time. Additionally, Deputy Governor for Markets and Banking David Ramsden highlighted food as one of the main drivers of inflation and said the situation ahead is «going to be challenging and tough.»