The Facts
The Bank of England's chief economist, Huw Pill, said British households and businesses must accept they're poorer and stop seeking pay increases or pushing prices higher. He said there's a game of “pass the parcel” going on in the economy — as households and companies try to pass on their higher costs.
Inflation in the UK is at 10.1%, a slight dip from last month when it was 10.4%. It has been higher than the Bank of England's target of 2% for a substantial period of time.
The Spin
Pro-establishment narrative
Some in the UK must accept that they're poorer, otherwise, inflation will stay persistent. Many people are reluctant to accept this fact. People and businesses continue to ask for higher wages or charge their customers more money as a response to higher bills and costs. It will increase inflation. We are all worse off, and we all have to take our share.
Establishment-critical narrative
Food prices have risen at their fastest rate in 45 years, and inflation is above 10% — five times the target. And Pill, a six-figure Bank of England official, says Brits must "accept they're worse off and stop demanding pay rises." The former Goldman Sachs banker is out of touch with reality, and people are suffering from economic distress.