world-economy

Bank of England Warns Price Controls Unsustainable as Food Costs Surge

Bank of England Governor Andrew Bailey rejected government intervention in food pricing, stating that price controls cannot serve as a long-term solution to affordability pressures. His comments followed reports that the UK Treasury had approached supermarkets about capping costs on essential groceries. Bailey also cautioned that Britain must strengthen trade partnerships with Europe to compete effectively in an increasingly multipolar global economy. Rising food and energy costs are driving inflation across major economies. U.S. consumer prices accelerated in April, with the inflation rate climbing to 3.8% year-over-year—the fastest pace since 2023, driven largely by surging gasoline and grocery expenses. Core inflation, excluding food and energy, rose 0.4% month-over-month and 2.8% annually. Wage growth continues lagging behind price increases, squeezing household budgets globally.