BoE rate setter says inflation is too high in UK

DAVID MILES, the Bank of England’s rate setter, warned yesterday that UK inflation is uncomfortably high.

“I am particularly concerned about inflationary pressures, since it is our job to keep the rate close to the two per cent target and it is uncomfortably above that at present,” said Miles yesterday.

Miles said there still remained a “great deal of uncertainty” over whether spare capacity in the economy could help to alleviate inflationary pressures.

His remarks come as figures yesterday showed that the Consumer Price Index has remained above three per cent for the sixth consecutive month. Inflation has continued to sit above the Bank’s two per cent target for almost a year.

Meanwhile, bread, clothes and cereal prices have continued to rise during August.