Andrew Bailey: Soaring inflation to hit UK economy harder than other nations

0.5pp hike on the table

Soaring inflation will hit Britain harder than any other major economy during the energy crisis, with inflation likely to stay higher for longer, the governor of the Bank of England has warned.

Speaking with other central bankers at a European Central Bank conference in Sintra, Portugal, Andrew Bailey said that the energy price shock that all European countries are experiencing will likely cause the UK economy to deteriorate more quickly and severely than other nations. "Unfortunately, there is going to be a further step-up in UK inflation later this year because that is a product of the way the energy price cap interacts with the energy prices we have observed over the last few months," he said. "I think the UK economy is probably weakening rather earlier and somewhat more tha...