UK has bigger inflation problem than US or euro zone, Bank of England’s Mann says

Britain has a bigger inflation problem than the United States or the euro zone, with both large headline price rises and growing signs of persistence in underlying pressures, Bank of England policymaker Catherine Mann said on Wednesday.

British consumer price inflation hit a 41-year high of 11.1% in October and in April, at 8.7%, was the joint highest alongside Italy’s among the world’s big advanced economies, sparking a sell-off in bond market as investors bet on more BoE rate rises.

Core inflation – which excludes volatile food and energy prices, and which Mann said was a better guide to future inflation trends – rose to its highest since records began in 1992 at 6.8% last month.