The Bank of England's chief economist has urged people to accept they are poorer, warning that inflation risks remaining stubbornly high
by economists, causing financial markets to price in that the Bank of England would respond with a further interest rate rise next month.
Mr Pill told the Columbia Law School's Beyond Unprecedented podcast:"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 to the rest of the world, which is mainly services in the case of the UK.
"So, somehow in the UK, someone needs to accept that they're worse off and stop trying to maintain their real spending power by bidding up prices whether through higher wages or passing energy costs on to customers etc.Chancellor blames pandemic and energy bill support for 'eye-watering' government borrowing
"What we're facing now is that reluctance to accept that, yes, we're all worse off and we all have to take our share; to try and pass that cost onto one of our compatriots and saying, 'we'll be alright, but they will have to take our share too'. "That pass-the-parcel game that's going on here, that game is one that's generating inflation, and that part of inflation can persist."
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