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Andrew Bailey calms the nerves with inflation of 4% | business

Inflation could be lower than the Bank of England’s new 4 percent forecast if supply chain bottlenecks are quickly removed and goods flow back into the market, Governor Andrew Bailey said.

In its August Monetary Policy Report, the bank forecast consumer price inflation of 4 percent later this year, its highest level since December 2011. It stated that a third of the increase in its forecast from 2.5 percent in May was due to higher energy bills and the rest was due to disruptions in global supply chains.

“One of the risks is that these supply bottlenecks could be resolved and we could actually get quite a wave of supply on the market.”

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