Bank of England (BoE) Governor Andrew Bailey stated that the UK and the world are facing the risk of rising food prices.
Answering the questions of MPs in the British parliament, Bailey said that wheat prices have increased by about 25 percent in the past six weeks alone.
Bailey said that the ongoing war in Ukraine and the Covid-19 outbreak in China caused commodity prices to increase. Noting that inflation in the UK will peak at 10 percent this year, Bailey said, “I am not happy with this situation. It is a bad situation we are in.”
Last month in the country, supermarket chains limited the number of products customers can buy due to the decline in sunflower oil from Ukraine.
In March, inflation in England, which was 7 percent, had reached the highest level in the last 30 years. BoE had increased the policy rate from 0.75 percent to 1 percent on 5 May.
