ECONOMY
Andrew Bailey: Inflation to fall sharply but food prices will stay high
Andrew Bailey said the dramatic drop in energy prices would soon be felt in the measurement of annual inflation
TOLGA AKMEN/EPA
Double-digit inflation will fall sharply in the coming months, the governor of the Bank of England has said, but some price pressures such as food prices and wages could remain high.
Andrew Bailey said at the British Chamber of Commerce’s annual conference that the dramatic drop in energy prices would soon be felt in the measurement of annual inflation, which calculates the difference in price rises this year compared to the surge recorded after Russia invaded Ukraine last year.
New inflation figures for April will be released next week and are expected to show a decline to around 9 per cent after the 10.1 per cent recorded in March.
These dynamics mean that “energy prices should begin to pull overall inflation down rather than push
