LONDON (Bywire News) - Andy Haldane, the Chief Economist at the Bank of England has warned that pressures on cost for British companies could cause prices to increase and become set in pay demands, echoing inflation wage-spirals that have been seen over the decades.
In an online interview with the Centre for the Study of Financial Innovation, Haldance said, "There's again a chance that those price pressures could get embedded in pay packets and then we have something closer - not on the same scale remotely - but something closer to the sort of 'wagey-pricey' spiral that we've seen at times in the past, the Seventies and Eighties."
(Reporting by Andy Bruce and Klaudia Fior, editing by David Milliken)