Bank of England sees less inflation risk

Bank of England Deputy Governor Sarah Breeden has indicated a reduced risk of second-round inflation effects compared to 2022. She attributes this to greater weakness in the labor market, suggesting that rising energy prices stemming from the Iran war pose less of an inflationary threat than those caused by Russia's invasion of Ukraine. This assessment provides a more optimistic outlook on inflation control, potentially influencing monetary policy decisions and market expectations regarding future price stability.