Monetary Policy

Bank of England has allowed inflation to ‘run out of control’

Julian Jessop quoted in The Express

IEA Economics Fellow Julian Jessop has been quoted in The Daily Express criticising the Bank of England for failing to control inflation as new data shows the price level continues to rise.

Julian said:

“Today’s disappointing numbers show how difficult it is to bring inflation back down once central banks have allowed it to run out of control.

“The fall in headline inflation in April, from 10.1 per cent to 8.7 per cent, is obviously welcome but entirely due to the smaller increase in domestic energy bills, which we already knew about.

“Other elements of inflation remain sticky, including food prices and the core measure (excluding food and energy) which jumped sharply.

“There was at least some more evidence today that pipeline cost pressures are easing, including producer price inflation in the food sector.

“May’s inflation data should therefore be better. But the next set of inflation figures will have to be much better to prevent interest rates from rising further.”

Read the full article here.

Julian’s comments were also quoted by UK Daily News.