Bank of England's Dhingra: 'Promising signs' for drop in UK inflation - reports

Dismissed fears of wage-price spiral

There are “promising signs” that UK CPI will return to lower levels despite the measure failing to come down significantly in recent months, argued Swati Dhingra, member of the Bank of England’s Monetary Policy Committee.

In a speech at the Royal Economic Society, Dhingra noted that producer price inflation had fallen to just 2.9% in May, down from a peak of 19.6% in July 2022. Producer price inflation is a strong influencer of future inflation, as the price it takes to produce goods is then funnelled through to consumers. Amundi CIO: Western markets set for 'slow-motion pain' "There are some promising signals that CPI inflation should ease, and that is mostly coming from... one of the best leading indicators...