LONDON – Bank of England Deputy Governor Jon Cunliffe said a jump in British inflation was a bump on the road as the economy reopened from lockdowns, and that the BoE would look at its likely persistence in new forecasts next month.
“This (economy) is not something that you can just close down and reopen without bumps in the way,” Cunliffe told CNBC television on Wednesday.
“We’re seeing a surge in demand. We’re seeing some constrictions in supply that’s driving inflation,” he said, adding the persistence of those drivers for price growth was the big question for the BoE.
Earlier, official data showed Britain’s consumer price inflation rose by more than expected to 2.5% in the 12 months to June, further above the BoE’s 2% target.