Catherine Mann: UK battle against inflation is not over

BoE rate setter

Wage growth in the UK remains a major inflationary concern, despite a recent drop in headline inflation figures, an external member of the Bank of England’s Monetary Policy Committee has warned.

Speaking to the FT's Economics Show podcast, Catherine Mann said the potential for large increases to wages in the coming year is "a problem for next year".  Bank of England cuts interest rates by 25 basis points to 5% Headline inflation hit the the BoE's target rate of 2% back in June, but Mann argued that the UK should avoid being "seduced" into believing that the ongoing struggle against inflationary pressures has finally ceased.  "Prices on services continue to be increasing and by and large, services prices never fall," Mann said, meaning that wages will have to continue to ri...