'Not Accepting That You're Poor Drives Inflation'

PEOPLE must face up to the fact they have become worse-off financially or risk deepening inflation further, the Bank of England's chief economist says.

- August Graham

Huw Pill noted that people are demanding higher wages, while businesses are raising prices, to counter rocketing bills.

But this adds to inflation, pushing up prices further, he warned, arguing that a broad "need to accept" that money is tighter must not be ignored.

Mr Pill said: "The UK, which is a big net importer of natural gas, is facing a situation where the price of what you're buying from the rest of the world has gone up a lot, relative to the price of what you're selling...

"You don't need to be much of an economist to [understand] you're going to be worse off.

Blame