Policy-makers ‘cannot disregard food price shocks’ – BoE study
Working paper calls on central bankers to pay closer attention to headline inflation when setting rates
Rising food prices have a “disproportionately strong and persistent” impact on people’s inflation expectations in the UK, according to new research by the Bank of England (BoE).
Its latest working paper, published on October 11, compares UK households’ inflation perceptions – their view of price rises over the previous year – with their expectations of how inflation will play out over the following 12 months.
The findings suggest that food price shocks lead most people to conclude that inflation
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