Bank of England warns UK is facing wage-price spiral

The head of the UK's central bank says inflation will prove hard to pull down amid a so-called "wage-price spiral" locking in higher prices. Bank Governor Andrew Bailey said on Wednesday that higher prices carrying over from last year's pandemic reopening and energy price shocks are at risk of getting worse. That's as a lack of workers is forcing firms to offer higher wages to try to fill open vacancies. But that is contributing to a so-called 'wage-price spiral'. That means more money for workers results in higher prices for everyone, worsening the cost of living crisis. The Bank of England's target inflation is 2% but the current rate is still more than five times that, despite hiking interest rates 12 consecutive times.
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