Member of Bank of England's Monetary Policy Committee Jonathan Haskel underscored on Friday that the latest data on Britain's economy could be indicating a downturn, following the news that the country's gross domestic product contracted in the third quarter.
"While the energy price shock might fade, the shortage of workers and labor market tightness, and thus upward pressure on inflation from wage growth, might persist in the longer term," Haskel explained, warning that inflationary pressures in Britain could stay elevated for a longer time in comparison to other countries.
Haskel attributed the negative economic trend to supply disruptions primarily led by the global pandemic, adding "that these supply-side stresses risk persistent inflationary pressure," which have been further aggravated by the war in Ukraine.
