Forward-looking price, wage indicators raise risk of inflation persistence.

Bank of England (BoE) policymaker Catherine Mann testifies on the November Monetary Policy Report (MPR) before the UK Parliament’s Treasury Select Committee (TSC) on Tuesday. 

Key quotes

Forward-looking price and wage indicators have been flat and above target for 4 months, raising the risk of inflation persistence.

Financial markets’ inflation expectations suggest boe will not get to sustainable 2% inflation in forecast horizon.

Latest budget offers opportunity for firms to realise price increases that are inconsistent with 2% inflation target.

Higher minimum wage was causing firms problems in maintaining wage differentials.

 

Source: https://www.fxstreet.com/news/boes-mann-forward-looking-price-wage-indicators-raise-risk-of-inflation-persistence-202411191028