Inflation set to rise long term

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New Bank of England chief economist warns of long-lasting inflation The Bank of England’s new chief economist has admitted that high levels of UK inflation could persist for longer than expected. In his first public remarks since taking office last month, Huw Pill told MPs that “balance of risks is currently shifting towards great concerns about the inflation outlook, as the current strength of inflation looks set to prove more long-lasting than originally anticipated.” Andrew Goodwin, economist at consultancy Oxford Economics, said Mr Pill has “placed himself on the hawkish side” of the Monetary Policy Committee, suggesting he could vote in favour of an early rise in interest rates. Mr Pill’s comments come as a survey of more than 8,000 UK companies by the Office for National Statistics found 29% of firms reported a sharp rise in prices of materials, goods and services bought in the last two weeks – up from 21% of firms reporting unusually rapid growth in costs in May, and 14% in late December 2020.

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