Firms hit back at bank governor in prices row

LONDON — Business leaders have hit back after the Bank of England governor said they should think twice before raising prices to cope with inflation.

Andrew Bailey said increased prices could drive up the cost of living even further and hurt the poorest most.

But the boss of pub chain JD Wetherspoon, Tim Martin, said bank managers were “breathing down the neck” of business owners.

UK Hospitality said Mr Bailey ignored the “stark situation” faced by many.

“If all prices try to beat inflation we will get higher inflation,” the bank governor told the BBC's Today programme.

Speaking a day after the bank raised interest rates to their highest level for 14 years, Bailey said higher inflation “"hurts people” and he warned rates would go up again if prices continued to rise.

—BBC