The BoE's Catherine Mann said that both headline and core inflation are high and persisting, and there are signs of businesses pushing through price rises.
The COVID-19 pandemic has increased households' ability to absorb price rises, and the increased minimum wage may have had a knock-on effect.
The BoE is monitoring inflation closely and will respond if there are persistent pressure.
There is a tension between the long-term level of interest rates needed for inflation control and the level needed for a stable financial system, which may bring volatility for exchange rates, asset prices, and inflation.
LONDON DAILY ARCHIVE
UK Inflation Rate Surpasses US and Eurozone Amid Pandemic Boost
The UK has a higher rate of inflation compared to the US and the eurozone.
31 May 2023 · 20:43 UTC
