BoE MPC member Jonathan Haskel said in a speech that “much of the variation in inflation is due to global factors such as imported goods and energy prices.” He expected much of that variation to be “transitory”.
“The latest data continues to indicate a tight labour market, putting upward pressure on wages,” he said. “From a living standards point of view, this is of course excellent news, but from an inflation point of view this has to be matched by increased productivity and so we have to be vigilant.”
The prospective rise in Bank Rate from its emergency level – when that comes – is not a bug, but a feature,” he added. “It reflects the success of the policies, mostly fiscal, health and science that have supported the economy over the pandemic.”