BoE’s Pill: Latest data points to more persistent inflation

Huw Pill, the chief economist at the Bank of England, stated on Monday that there are dangers associated with UK inflation on both sides. He predicts that during the first half of 2025, inflation will most likely revert to the target level. By the end of the current year, he anticipates the inflation rate to drop below 5%.

GBP/USD is gaining only modestly on Monday and is currently trading at 1.2775, as it has been for the past few hours. Pill’s remarks had no real effect.

According to Pill, real wages will increase in the second half of 2023. He noted that the most recent data indicated more persistent inflation, particularly as a result of food inflation that has persisted longer than previous bursts.