Rate-setters may need a crystal ballpublished at 11:00 BST
Kevin Peachey
Cost of living correspondent
Image source, EPA/ShutterstockAndy Burnham has received a letter on impacts to supermarket shoppers
The Bank’s governor, Andrew Bailey, often says that the interest rate decision is a long-term one. Its impact is seen in the future, not immediate, path of prices.
But, what’s happened already feeds into that decision.
Today, a letter to PM Andy Burnham has highlighted the impact of higher costs to farmers, food producers and supermarket shoppers.
“The UK food system is dangerously exposed to shocks far beyond our borders,” says Anna Taylor, executive director of charity The Food Foundation, which organised the letter.
Growers have faced the surging cost of fertiliser. Struggling families will often turn to cheaper, less healthy food and cut down on fruit and vegetables, she says.
The letter calls on the government to make the food system a national priority.
Meanwhile, rate-setters at the Bank somehow need to consider what suppliers and consumers face next.
