BoE’s Pill: Latest data points to more persistent inflation

Bank of England (BoE) Chief Economist Huw Pill said on Monday that there are risks on both sides of UK inflation. According to him, inflation is likely to return to the target during the first half of 2025. He expects inflation to fall to 5% by the end of the current year.

Pill sees real wage growth during the second half of 2023. He mentioned that the latest data points to more persistent inflation, particularly due to food inflation that is longer-lasting than past spikes.

Market reaction:

GBP/USD is rising modestly on Monday, hovering around 1.2775, as it has been the case over the last hours. Pill's comments had no significant impact.