‘Early days’ to see full effect of energy prices on inflation, BoE’s Bailey says

The Bank of England's Bailey suggests that it may take some time before the full impact of rising energy costs is reflected in inflation. He notes that sustained higher energy prices will likely squeeze corporate margins, pushing some businesses to pass on these costs to consumers through price increases. This insight underscores the potential economic ripple effects of energy price hikes and their significance in shaping future inflation trends. For a deeper dive, check out the full article on the Financial Times website.