Apocalyptic food prices, soaring inflation and the cost of living crisis

The Bank of England governor Andrew Bailey has said there is a possibility of food price rises in the UK and it is a “major worry” for the UK and other countries. 

• Bailey says the war in Ukraine was affecting food supploes. 
• He defended the Bank’s performance following criticisms it have not done enough to try to reign in rising prices. 
•  Inflation – the rate at which prices rise – is at a 30-year high.
• He added there was a “very big income shock” from the increase in global goods prices would hit demand in the economy and push up unemployment. 
• Difficulties in shipping out food supplies from Ukraine could hit world supply of wheat and cooking oil. 
• Inflation hit 7% in March, and figures due out later this week are expected to show the rate climbed higher in April.
• The Bank has warned inflation could hit 10% by the autumn, well above its 2% target.
• The surge in the cost of living has led to households cutting back their spending, which is hitting growth.
• Andrew Bailey asked high-earners to not demand big pay rises.