FILE PHOTO: Britain's Deputy Governor of the Bank of England Jon Cunliffe speaks during the Bank of England's financial stability report at the Bank of England in the City of London, Britain June 27, 2017. REUTERS/ Jonathan Brady/Pool
July 14, 2021
LONDON (Reuters) – Bank of England Deputy Governor Jon Cunliffe said a jump in British inflation was a bump on the road as the economy reopened from lockdowns, and that the BoE would look at its likely persistence in new forecasts next month.
“This (economy) is not something that you can just close down and reopen without bumps in the way,” Cunliffe told CNBC television on Wednesday.
“We’re seeing a surge in demand. We’re seeing some constrictions in supply that’s driving inflation,” he said, adding the persistence of those drivers for price growth was the big question for the BoE.
Earlier, official data showed Britain’s consumer price inflation rose by more than expected to 2.5% in the 12 months to June, further above the BoE’s 2% target.
(Writing by William Schomberg, editing by David Milliken)