The Bank of England is determined to prevent a wage-price spiral
Higher inflation is coming. But monetary policymakers are determined to keep it under control
THE GOVERNMENT faces no shortage of crises. As well as the fallout from prime-ministerial parties, it must contend with fizzing inflation of 5.4% in December, the biggest annual increase in almost three decades. Officials are racing for ways to avert a crunch in April, when energy-price rises and higher payroll taxes are due. Public opinion is souring; over half of those polled by YouGov on January 17th thought the government was handling inflation badly, up from a third a year earlier. And on January 27th a report by the Treasury all-party parliamentary committee warned of the potential for a “wage-price spiral”.
This article appeared in the Britain section of the print edition under the headline “Buzzkill”
Britain January 29th 2022
- Boris Johnson, the prime minister who can’t say no
- The Bank of England is determined to prevent a wage-price spiral
- Little sign of compromise over the Northern Ireland protocol
- Britain has long been a leader in genome-sequencing
- Brexit and covid-19 have produced a bigger civil service
- Britain’s newly listed tech firms are taking a beating
- After more than two decades, Britain is finally rid of termites
- Boris Johnson is making boring politics look attractive
From the January 29th 2022 edition
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