Andrew Haldane has warned the steep rise in inflation charges may proceed to impression the UK financial system for years to come.
The former Chief Economist for the Bank of England defined he foresaw the sharp improve in inflation and speculated the rate may rise additional into the double digits.
“We learnt last week that inflation could hit over 10 percent by the end of this year, do you agree with that or could it go higher?” requested LBC host Nick Ferrari.
“It could – I fear it might,” confirmed Mr Haldane.
He continued: “This isn’t a new thing – even this time last year when I was CE I was worried that price pressures were bubbling up,” defined Mr Haldane.
“As it turned out, things have even surpassed my worst expectations.”
“We’re now looking prospectively at double digit rates of inflation which is not quite back to the seventies, but getting on that way.”
“The level of inflation is high, I’m slightly fearful it might stick around for some little while as well.”
“This won’t have come and gone in a matter of months, I think this could be years rather than months,” revealed the former Chief Economist.
“It isn’t just a question of war in Ukraine and energy prices.
“The price of pretty much everything is going up – it’s food, it’s energy, it’s most goods and services, it’s pay, it really is very broadly based.”
He explained: “That’s one of the things that means it’s more likely to stick around a bit longer.”
Read more: UK recession warning – what that could mean for you and your money
The former Bank of England chief established the rising inflation rate has signalled a shift in the economic patterns of the last 30 to 40 years.
Mr Haldane described a lack of resources and labour globally that has forced the price of essentials to rise rapidly.
The current rate of inflation in the UK is set to hit 10 percent, a 30 year high for the nation.
Prices of essentials including fuel and food have soared as the UK suffers an extensive cost of living crisis.