Food Prices Set To Soar And ‘Very Big Income Shock' Will Hit Jobs, Warns Bank Chief

Britain faces the “major concern” of “apocalyptic” global food-price rises sparked by Russia's invasion of Ukraine, the Bank of England's governor told MPs yesterday.

- Anna Isaac

Andrew Bailey warned of a “very big income shock” to households, and admitted feeling “helpless” in the face of surging inflation.

His comments came as veteran Tory MP Michael Fabricant called on the chancellor, Rishi Sunak, to raise benefits in line with inflation, and as concerns were raised over plans by the energy regulator to revise the price cap on bills every three months instead of every six.

Mr Bailey defended the Bank's monetary policy and said there could be a further rise in food costs if Ukraine, a major exporter of agricultural products, is unable to ship wheat and cooking oil from its warehouses because of a Russian blockade. “Sorry for being apocalyptic for a moment, but that's a major concern,” Mr Bailey said, noting that wheat prices alone had risen by just under 25 per cent in the past six weeks.