BoE's Huw Pill: Food prices may never return to pre-inflation levels

Wage demands not driving inflation

Food price inflation is set to stay higher for longer, while falling prices may not be seen again, Bank of England chief economist Huw Pill has said.

During a live Q&A session on Monday (7 August), Pill argued "the days of seeing food prices fall . . . does seem to be something we may not be seeing for a little while yet, if in the future at all". He explained staples such as eggs and milk may see price cuts, but there was no sign of a "transformation" in higher prices. Summer rain dampens retail demand Food price inflation is likely to remain in double digits, at around 10%, at the end of the year before falling further in 2024, he said, remaining much higher than overall inflation. "That is still not a very comfortable leve...