COMPANIES have been told by the Governor of the Bank of England that if they continue to hike prices interest rates will have to go up.
Inflation rose again last month, largely caused by record price increases on everyday goods and services.
Big food producers like Mars, Magnum maker Unilever, Heinz and Premier Foods pushed up prices well above inflation.
Governor Andrew Bailey said: “I would say to people setting prices, please understand if we get inflation embedded, interest rates will have to go up and higher inflation really benefits nobody.”
Mr Bailey was speaking a day after the Bank raised interest rates for the eleventh time to 4.25 per cent.
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While businesses argue that they have to put prices up to pay for rising staff and energy costs, there are fears this “greedflation” is simply a way for them to boost profits The price of basic items such as a McDonald’s mayo chicken, a pint of beer and a latte have all gone up.
Kate Nicholls, of UK Hospitality, said: “Without adequate Government support, whether through energy, business rates or VAT, doing as the Governor asks will just mean business failure and job losses, compounding the country’s economic woes.”
GOOD WETHER
WETHERSPOON is back in the black with profits hitting £4.6million for the six months to January — compared to a £21.3million loss a year earlier.
Total sales of £916million are three per cent higher than in 2019.
Trade over the past seven weeks was 9.1 per cent above 2019 levels.
Good week
CENTRICA chief Chris O’Shea saw his pay rise to £4.5million despite the British Gas pre-payment meters scandal.
Bad week
TIKTOK boss Shou Zi Chew was grilled by Congress as the US considers banning it over security concerns.
BANKS WORRY
FEARS of a new financial crisis linger as shares in European banks and the FTSE 100 fell yesterday.
Germany’s DEUTSCHE BANK slumped by as much as 13 per cent.
German Chancellor Olaf Scholz dismissed comparisons of Deutsche’s situation to CREDIT SUISSE, who were rescued by UBS last week.
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