Dhingra Sees Clarity on Iran War Inflation Pressures by Winter

Bank of England policymaker Swati Dhingra expects clearer inflation pressures from the Iran war to emerge in the winter months. Speaking at a conference hosted by the National Institute of Economic and Social Research, Dhingra noted that Britain is not currently experiencing widespread price increases like those seen in 2022 following Russia's invasion of Ukraine.

Dhingra pointed out that the country's labor market has weakened since then. She explained that key indicators will emerge over the coming months, including winter energy pricing and wage settlements.

'I think the timing issue here is that we're going to know from the winter energy pricing what happens there, we're going to know much more about wage settlements and where they end up at, and financial pricing already underway,' Dhingra said.