SHAFAQNA- The Bank of England’s Chief Economist, Hugh Peele, said recently that British households and businesses should accept that they have become poorer and stop asking for pay rises.
A “series of inflationary shocks” from the pandemic, the conflict in Ukraine and product shortages have pushed prices in Britain to their highest level in 40 years, RT reported, citing Pill. He claimed that in response to the increase in bills and other rising costs, workers and businesses try to transfer the effect of inflation to each other.
In the continuation of this report, Peel argues that people “try and pay this to one of our fellow citizens.
He warned that “the closed game that’s going on here … that game creates inflation, and that part of the inflation could continue.”
Annual inflation in the UK reached 10.1% in March, driven mainly by higher food prices. He concluded: “So in the UK, people need to accept that they are worse off and stop trying to preserve their real spending power by raising prices, whether through higher wages or passing energy costs on to customers.”
Source: RT
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