The chief economist at the Bank of England, Huw Pill, stated in a podcast in the United States on Tuesday that people in the United Kingdom must acknowledge that they are poorer or prices will continue to rise.
According to the BBC, Pill stated that there is a “reluctance to accept that, yes, we’re all worse off”
According to him, in response to higher bills and other costs, employees had requested wage increases and businesses had increased their prices.
In March, the inflation rate in the United Kingdom was 10.1%. The rate fell from 10.4% to 10.2% last month, but this does not indicate that prices are decreasing. It indicates that they are rising at a reduced rate.
A Bank of England analyst advised Brits to accept their poverty or prices will rise.
The goal of the Bank of England is to maintain inflation at its target rate. In response to rising prices, it has increased interest rates, making it more costly to borrow money.
The measure was intended to reduce consumer spending, thereby reducing demand for products and slowing price increases.
As a result of rising energy costs and food prices, a number of employees have requested pay increases to alleviate the strain on household budgets.
According to the economist, what contributed to inflation and caused prices to rise even further across the economy were wage increases demanded by workers and price increases by businesses.
Pill told the Beyond Unprecedented podcast from Columbia Law School, “Someone in the United Kingdom needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether through higher wages or passing energy costs on to customers, etc.”
“What we’re facing now is a reluctance to accept that, yes, we’re all worse off and we all have to take our share; to try and pass that cost on to one of our fellow citizens and say, ‘We’ll be fine, but they’ll have to take their share as well,'” said the leading economist.
Pill added, “The current game of pass-the-parcel is one that generates inflation, and this portion of inflation can persist.”