Dhingra: Winter Will Reveal UK Inflation Risks

Swati Dhingra, an interest rate-setter at the Bank of England (BoE), believes that winter will be crucial in assessing UK inflation risks. According to her, the extent of long-term inflation pressures caused by global events, such as the Iran war, will become clearer over the coming winter months.

Dhingra pointed out that Britain is not experiencing broad-based price rises like those seen in 2022, when energy prices jumped due to Russia's invasion of Ukraine. The current UK jobs market is also weaker compared to 2022.

The BoE's deputy governor Clare Lombardelli also weighed in on the matter, stating that rates would likely rise if energy prices remain high, unless there is clear evidence of a weakening economy.