Speaking on a podcast in the United States, Pill noted that there is a reluctance to accept that people in the UK are worse off. In response to higher bills and increasing costs, workers have been seeking wage increases, while businesses have been charging more for their products or services. This, in turn, adds to inflation, making prices across the economy rise even further.
UK inflation currently stands at 10.1% in the year to March, much higher than the Bank of England’s target of 2%. The Bank has responded by increasing interest rates to make borrowing money more expensive, with the aim of reducing spending and cooling demand for goods, thus slowing down price rises. Despite this, pay increases have not kept up with inflation, resulting in people being worse off overall.
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