Higher food prices may be here to stay, says Bank economist

Higher nutrient prices whitethorn beryllium present to stay, the Bank of England's main economist has said.

Huw Pill told MPs that the complaint astatine which nutrient prices are rising was expected to dilatory to "about 10% by the extremity of the year".

But helium warned a instrumentality to cheaper nutrient was "something we whitethorn not beryllium seeing for a portion yet, if successful the aboriginal astatine all".

The terms of nutrient and non-alcoholic drinks roseate by 17.4% successful the twelvemonth to June.

Over the past fewer months, the nutrient ostentation complaint has gradually been dropping aft hitting a precocious of 19.2% successful March, according to authoritative figures.

During a question-and-answer league with MPs connected Monday, the economist admitted it was inactive not a "very comfy level".

It comes days aft the Bank decided to rise involvement rates for the 14th clip successful a enactment successful a bid to summation the outgo of borrowing, dampen request and truthful dilatory terms rises.

Inflation remains acold supra the Bank of England's people of 2%.

Mr Pill said nutrient terms ostentation had been "more agelong lasting than expected" and determination had been "some hiccups" with bringing it down - notably the warfare successful Ukraine and the export of atom retired of the Black Sea.

Global prices for definite commodities were starting to fall, Mr Pill said.

But helium besides claimed that immoderate firms had locked successful higher prices erstwhile the warfare successful Ukraine had archetypal started "in the look of uncertainty", which had led to higher prices connected the shelves.

Prices connected eggs and beverage were present opening to fall, helium added.

He said that shoppers would not spot a abrupt translation of prices successful the aisles, but whitethorn spot a "gradual process", with prices coming down slowly.

While helium claimed the "direction of travel" was towards little costs, helium besides said: "Unfortunately the days of seeing nutrient prices fall, that does look to beryllium thing that we whitethorn not beryllium seeing for a small portion yet, if successful the aboriginal astatine all."

Its brag Helen Dickinson besides warned of imaginable proviso concatenation issues connected the horizon, owed to atom export restrictions from India, for example.

In the past twelvemonth oregon so, soaring nutrient and vigor bills person driven ostentation up.

The past clip the Bank's main economist spoke publicly, helium stoked contention by saying radical should halt asking for wage rises to support up with soaring prices due to the fact that it risked keeping ostentation higher for longer.

Mr Pill was rebuked by his boss, Bank of England politician Andrew Bailey, who said Mr Pill's "choice of words was not right".

Mr Pill aboriginal apologised for the "inflammatory" comments which suggested radical indispensable judge they are poorer.