Bank of England governor warns of 'apocalyptic' food prices due to war in Ukraine
Andrew Bailey, The governor of the Bank of England has warned of "apocalyptic" food prices, saying he feels "helpless" amid soaring inflation.
Andrew Bailey hit back at criticism that the Bank acted too slowly to tackle inflation blaming a "bad situation" on a series of external shocks including the war in Ukrania and the Lockdown in China.
He said he does not think the Bank could have done anything differently to prevent soaring prices, as mentioned in Sky News.
He said the conflict in Ukraine has pushed up energy prices, which are the biggest driver of inflation - while the lockdown in Shanghai has exacerbated increases in the cost of goods due to its effect on supply chains.
Mr Bailey said the Bank also underestimated the number of people who would leave the labour market after the threat of the pandemic receded, which is leading to labour shortages that affect inflation.
The consumer price index (CPI) measure of inflation hit 7% in March and is expected to pass 10% later this year.
