Per BBC

The chief economist of the Bank of England has just let out a statement saying British people "need to accept" that they are poorer now. This was reportedly said by Huw Pill during a podcast in the US.

Pill's argument was that to prevent prices from rising further, the UK needed to accept that they were now poorer. The discussion circled around how workers were asking for wage increases amid higher bills and costs increasing.

Aside from this, businesses were also charging more. In the year to March, it was noted that the UK inflation was 10.1%. This referred to the rate at which prices increased.

The Bank of England's target for inflation has been at 2%. However, UK inflation has remained higher than that for a period of time.

Huw Pill gave a statement during the Columbia Law School's Beyond Unprecedented podcast regarding the importance of accepting the situation.

Pill: "Somehow in the UK, someone needs to accept that they're worse off and stop trying to maintain their real spending power by bidding up prices, whether through higher wages or passing energy costs on to customers etc,"

At the start of the year, the UK economy experienced a small recovery through a 0.1% increase in GDP. This reportedly helped its economy to be able to slightly bring down the risk of landing into a recession.

The central bank, however, expected a recession to come from 2022 until 2024. During that time, the GDP still sat at 0.3% below its pre-Covid levels.

Towards the end of 2022, it was reported that almost two million UK households missed payments or defaulted on at least one mortgage leading to Christmas. The study found that around six out of 10 participants would try to cut back on at least one financial decision, resulting in an estimated 15.8 million households holding back on expenses.

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