BoE Warns Food Inflation Exceeds Forecasts and Will Keep Rising

Bank of England officials warned on Thursday that food inflation is running above the central bank’s projections and is likely to rise further, intensifying pressure on overall consumer prices. BoE official Lombardelli said food costs would "carry on rising" and stressed that they now play a decisive role in shaping households’ inflation expectations. Governor Andrew Bailey added that food and energy prices remain particularly salient for consumers, underscoring the challenge facing policymakers. The remarks heighten scrutiny on the Monetary Policy Committee ahead of its next rate decision as it weighs whether additional tightening is needed to keep broader inflation on track toward the BoE’s 2% target.