Bank of England (BoE) rate-setter Catherine Mann calls UK inflation "embedded" as headline inflation heads toward 4%, but a 24-month services-employment contraction suggests the driver is energy costs and margin repair, not a wage-price spiral, ahead of the 5 November rate decision.
UK construction PMI stayed in contraction even as September’s rebound beat consensus, as Mann warns inflation is embedded ahead of November. Source
Catherine Mann gave the Bank of England's (BoE) hawk wing its sharpest line of the autumn on Tuesday. Inflation, she told a TS Lombard Capital Markets Summit fireside chat, has become "embedded" after running above the 2% target for the entirety of her time on the Monetary Policy Committee (MPC). She flagged headline Consumer Price Index (CPI) heading toward 4% around the turn of the year, landing squarely inside the window when UK employers set annual pay deals.
