Mann says high UK inflation has become embedded
Catherine Mann said inflation remaining above the Bank of England’s 2% target for a prolonged period has embedded price pressures in the economy.
Mann said she was particularly concerned that inflation could reach 4% around the end of the year.
Mann has been part of the minority voting since July for a 25-basis-point increase in the policy rate to 4%.
A potential 4% inflation rate around year-end would coincide with the period when wage negotiations are most common, increasing the risk that price and wage pressures become more persistent.
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