Bank of England’s Dhingra sees downside risks to inflation outlook

Bank of England policymaker Swati Dhingra said on Tuesday that she saw downside risks to the outlook for British inflation, with the recent increases reflecting rising energy bills rather than underlying price pressures.

“On balance, the risks to inflation and growth appear to me to be tilted to the downside,” Dhingra said in her annual report to parliament’s Treasury Committee of lawmakers.

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“The most significant contributions to the near-term pickup in headline inflation reflect developments in household energy bills and past energy shocks, and to a lesser degree, regulated price increases, rather than an imbalance in underlying supply and demand pressures.”