Bank of England Governor Andrew Bailey said in a statement on the fight against high inflation that some retailers are putting pressure on the industry and charging customers too much.
Bailey noted that some retailers in the country apply high prices when necessary.
“If you look at gas prices, some vendors are probably charging too much for it (for the sale).” In his speech, Bailey pointed out that the role of inspection institutions is extremely important in preventing retailers from applying excessively high prices.
“This (tackling retailers who charge high prices on products) will help reduce inflation,” Bailey said.
Evaluating the economic outlook of England, Bailey said, “Inflation is very high. We have a target for prices not to rise more than 2 percent annually, but at the moment inflation is above 8 percent.” made its assessment.
Stating that he is aware of the negative impact of high prices on households, Bailey said, “This (Rising interest rates) will have more impact on young people, young families. I understand that. We want to bring inflation back to where it should be. Then we can determine what level the interest rates should be.
Stating that there are indications that inflation will go down, Bailey said, “I can’t give a date for when interest rates start to fall because it really depends on what will happen in the coming period. But the most important thing you need to do is to reduce inflation.” used the phrases.
The BoE had increased its policy rate by 50 basis points last month.
The Bank of England (BoE) increased the policy rate by 50 basis points from 4.50 percent to 5 percent last month.
With this increase, the BoE has increased interest rates for the 13th consecutive time as part of its tightening policy since December 2021 to reduce inflation.
Annual inflation remained stable at 8.7 percent in May, according to the country’s Office for National Statistics (ONS) data. The expectation was that inflation would be 8.4 percent due to the decline in energy prices.