Speaking yesterday, Bank of England foreign monetary policy committee member Megan Green said:
- Inflation in the UK services sector is rising, but on a downward path.
- The UK budget will raise inflation, as the Autumn Budget will raise inflation by about 0.5 basis points at its peak.
- Inflation indicators are generally trending downward.
- Inflation in the service sector is not falling as fast as I would like, but it is on a downward trajectory.
- The slowdown in the labor market and wage growth should improve.
- I see some upside risks to the outlook for wage growth.
- The risk of excessive cuts is greater than moving slowly.
- I think that consumers will be sensitive to price rises even after inflation returns to the target.
