The public thinks that inflation is a problem, and are looking to the Bank of England more than the government to fix it
Prices continue to outstrip wages as inflation rises to its highest level for a year, at 2.9%, with pay growth as low as 1.3%. The news comes just weeks after the Bank of England was taken over by new Governor Mark Carney. New YouGov research finds the public perception to be of rapidly increasing inflation, which is more controlled by the Bank of England than the government.
Nearly everyone (93%) feels that prices are rising faster than wages, and 65% say prices are rising much faster.
Three quarters (74%) of Britons feel the price of utility bills are rising the most; 71% feel the same about food; 57% about petrol; 21% about public transport and 11% about rent.
When asked to consider who has more control over the rate of inflation, the Bank of England or the government, more (45%) choose the Bank of England than the government (31%).
Analysts predict that if the current level is merely a peak which falls later in the year then the economic recovery will slowly gather momentum. However David Kern, chief economist of the British Chamber of Commerce, says that “if unexpected developments, such as renewed surges in energy prices, push inflation up further, our growth prospects will face new risks.”