BoE Chief Economist Huw Pill said at a conference, “we are expecting to see headline inflation tail off in the second half of next year, in fact quite rapidly, on account of those base effects.” But, “there’s a lot of uncertainty around the outlook for gas price developments,” he added.
“Very low levels of unemployment and the association with the mid-1970s is not entirely reassuring from an inflection point of view,” Pill said. “People in the 50 to 65 age group, relative to pre-COVID levels, are having a higher level of inactivity not being in a job and not looking for work.”
