Ominous Warning

 Apologising for sounding "apocalyptic", Andrew Bailey, the Bank of England governor has warned the war in Ukraine was affecting food supplies.

Bailey warned that that a "very big income shock" from the increase in global goods prices would hit demand in the economy and push up unemployment.

He also said that difficulties shipping out food supplies from Ukraine could hit world supplies of wheat and cooking oil. World wheat prices have risen 25% over the past six weeks.

"There's a lot of uncertainty around this situation," Mr Bailey said. "And that is a major, major worry and it's not just I have to tell you a major worry for this country. There's a major worry for the developing world as well. And so if I had to sort of, sorry for being apocalyptic for a moment, but that is a major concern."

He insisted that most of the above-target inflation was due to global prices not domestic factors.

"80% of the overshoots over the target... is due to energy and tradable goods," he said.

Asked whether he has felt helpless given the situation, Mr Bailey admitted he had.

"It's a very, very difficult place for us to be in," he said.

The surge in the cost of living has led to households cutting back their spending, which is hitting growth.

Bank governor in 'apocalyptic' warning over rising food prices - BBC News