BoE’s Tenreyro: Oil Prices Spikes Increase Inflation, Dampen UK Economy

Bank of England Monetary Policy Committee Member Silvana Tenreyro said on Wednesday that the latest rise in oil prices will increase inflation and dampen UK economic activity.

The high level of companies wage expectations in the BoE’s latest Agents’ survey was a surprise, though we will have to see if it materializes.

Evidence of a wage-price spiral in the UK is not obvious, Tenreyro added, saying that there is no explosive dynamic. There were some signs of easing supply-chain bottlenecks before the latest developments in Ukraine, Tenreyro said.