MPC member fires inflation warning

Professor Tim Besley, part of the rate-setting team at the Monetary Policy Committee (MPC), says if this happens businesses will raise prices to cover the higher costs, leading the UK economy “back to square one”. Inflation breached 20% in the mid-1970s and is currently at 4.4%. The current UK figure is more than double the MPC target of 2% and has been caused in part by rising food, fuel and energy costs. The Bank of England voted to hold interest rates at 5% for the fourth month in a row at the beginning of August. Minutes of the latest meeting are due to be released on Wednesday. ...