Bank of England Deputy Governor Dave Ramsden's recent comments signaling reduced concern about UK inflation are in contrast to the warning issued by Catherine Mann, an external member of the Monetary Policy Committee at the Bank of England. Mann cautions that the battle against inflation is not yet over and expresses concern that inflation will rise again despite being brought back down to the Bank of England's 2% target over the last two months. She cites survey evidence suggesting that companies are still expecting to make relatively big increases to both wages and prices, indicating a potential problem for next year. The latest data on wage increases, inflation, growth in the economy, and retail sales will be published this week by the Office for National Statistics [805a22db].
This difference in outlook between Bank of England officials highlights the ongoing uncertainty surrounding UK inflation. While Ramsden believes that the risk of inflation is now tilted to the downside and evidence of persistent price pressures has receded, Mann warns against being "seduced" into thinking that the pace of price rises has been contained. She emphasizes that companies are still anticipating significant wage and price increases, which could pose challenges in the future. The upcoming release of data on wage increases, inflation, economic growth, and retail sales will provide further insight into the state of the UK economy [6d9382cb][805a22db].
It is worth noting that Mann's warning comes after Chancellor of the Exchequer Jeremy Hunt announced tax cuts to boost the popularity of the Conservative Party ahead of a general election. The impact of these measures on the economy is yet to be assessed by the Bank of England, with a review scheduled for December [a3d4e370].
In summary, Bank of England Deputy Governor Dave Ramsden's reduced concern about UK inflation contrasts with the warning issued by Catherine Mann, an external member of the Monetary Policy Committee. Mann cautions that the battle against inflation is not over and cites survey evidence suggesting that companies are still expecting significant wage and price increases. The upcoming release of economic data will provide further insight into the state of the UK economy. These differing views highlight the ongoing uncertainty surrounding UK inflation [6d9382cb][805a22db][a3d4e370].