A chief economist has said British households and businesses 'need to accept' they are poorer amid the cost-of-living crisis.
Huw Pill said that people and businesses have responded to higher bills and costs by asking for higher wages or charging their customers more money. But this, he said, adds to inflation, pushing up prices even further across the economy.
Speaking on the Beyond Unprecedented podcast from Columbia Law School, Mr Pill said: "The UK, which is a big net importer of natural gas, is facing a situation where the price of what you’re buying from the rest of the world has gone up a lot, relative to the price of what you’re selling to the rest of the world, which is mainly services in the case of the UK.
