BoE's Mann: high inflation has become embedded in UK economy
Bank of England policymaker Catherine Mann said inflation running above the target appears to have become embedded in the British economy. She said she was concerned inflation looked set to hit 4% around the turn of the year, potentially entrenching price rises.
LONDON, Oct 6 (Reuters) — Inflation running above the Bank of England's 2% target appears to have become embedded in the British economy, BoE policymaker Catherine Mann said on Tuesday. "We've had inflation well above target for the entire time I've been in my position.... Inflation has become embedded," she said at a conference hosted by economic advisors TS Lombard. Mann added that she was particularly concerned that inflation looked set to hit 4% around the turn of the year, the most common period for employers and workers to negotiate wage increases, potentially further entrenching price rises.
Since July, Mann has been part of a minority on the BoE Monetary Policy Committee voting for a quarter-point rise in interest rates to 4%. com; +44 20 7513 4034;)