According to the head economist at the Bank of England, if people in the UK don’t acknowledge that they are poorer, prices will keep rising.
There is a “reluctance to accept that, yes, we’re all worse off,” Huw Pill stated on a US podcast.
He claimed that workers had requested salary rises in response to rising bills and other expenditures, and businesses were raising prices.
Inflation in the UK, which measures how quickly prices rise, was 10.1% from March to March.
From 10.4%, the rate decreased last month, but this does not indicate that prices are decreasing. It indicates that they are ascending a little more slowly.
For a while, the UK’s inflation rate exceeded the Bank of England’s 2% target.
The Bank’s responsibility includes maintaining inflation at the desired level. It has raised interest rates in reaction to rising prices, which raises the cost of borrowing money.