Bank of England boss warns about 'apocalyptic' food-price rises and urges workers to 'reflect' before asking for higher wages

The governor of the Bank of England warned that the price of food was going to go up and that workers should not ask for a pay rise.

Andrew Bailey told the Treasury Select Committee that a big income shock from the increase in the global prices of goods would hit demand in the economy and push up employment.

World supplies of wheat and cooking oil could be affected by difficulties in shipping out supplies from Ukraine. In the last six weeks, global wheat prices have risen 25%, and Ukraine is a major producer of both.

Bailey said that the war and China's ongoing COVID-19 wave were putting pressure on prices.

Bailey said there was a lot of uncertainty around the situation.

I have to tell you that it is a major worry for this country. There is a major worry for the developing world. Sorry for being apocalyptic, but that is a major concern.

In an apparent reference to the idea that wage increases could lead to more inflation, Bailey reiterated his calls for employees not to seek pay rises despite the rising costs.

The governor said that people who are on higher earnings should think about asking for high wage increases.

It is a societal question. I am not talking about this. I asked the bank not to give me a pay rise because I felt it was the right thing for me, and I was asked if I had taken a pay rise myself this year.

Everyone has to make their own judgement on that. It is not for me to tell people what to do.

The bank warned that inflation in the UK could hit 10% by the autumn, well above its 2% target. Policymakers warned that the UK economy could contract for the last three months of the year, raising fears of a recession.

It hiked interest rates to 1% from 0.75% in a bid to stem inflation.

The chair of the Treasury Select Committee accused the bank of being asleep at the wheel.

Around 80% of the pressures were caused by issues outside his control, Bailey said.

He told the MPs that he didn't think there would be a war in Ukraine.

The first quarter of the year saw a 1.2% drop in regular pay.

The figures confirm that families are facing a cost of living nightmare, with wages failing to keep up with soaring energy bills and food prices.

It is the worst time to raise taxes on struggling families, yet the chancellor is not giving up.