The Bank of England has urged consumers not to worry about the rate of inflation across the country.
According to the bank, if the public become concerned that inflation will rise, it will lead to demands for pay increases, which will in turn have an unwanted impact on inflation.
So while consumers struggle to become debt free and prices continue to rise, the bank is hoping that the country will have faith in its capacity to control inflation through its setting of interest rates.
“It is easier for monetary policy to achieve its objective of price stability if households and businesses believe that policymakers will do so – i.e. that inflation expectations remain close to the target in the medium term,” a bulletin from the organisation explained.
A report from cahoot recently suggested that many thousands of British consumers remain willing to add to their respective debt management burdens in order to pay for shopping sprees.
Written by Dan Mather