GREEDY firms are causing shoppers pain and risking inflation lasting longer with big price hikes, the Bank of England said.
GettySome of Britain’s favourite food brands have put prices up by 11.2 per cent since the summer[/caption]
Catherine Mann, who is part of the Bank’s committee that sets interest rates, said the rises were higher than the Bank expected.
She told Bloomberg she was “concerned about the extent to which there is strong pricing power among firms and acceptance of those price rises by a lot of consumers”.
She added: “Even in the face of the cost of living crisis there still are a lot of people out there who are willing to pay higher prices and firms are willing to set those prices high.”
Ms Mann said further interest rate rises may be needed to tackle inflation.
Marmite prices have gone up 11.2% since last summerBen and Jerry’s ice cream has also gone up by 11.2%Ambrosia makers, Premier Foods, increased some of its products by more than 50 per cent
She warned that the pound could fall further.
It fell as low as $1.18 yesterday, down 1.10 per cent.