‘Greedflation’ fears rise as Bank official warns firms against price hikes

Catherine Mann says lower import prices may come from the knock-on effect of Donald Trump’s tariffs on countries, with China, for example, perhaps diverting cheaper exports to Britain. Photograph: Phil Noble/Reuters

Businesses will need to show they are keeping a lid on prices before there can be further interest rate cuts, according to the Bank of England interest rate-setter Catherine Mann.

In a warning to retailers and consumer goods companies to resist pushing up prices by more than the increase in their costs, Mann said she was wary of firms looking to rebuild their profit margins after a squeeze in recent years.

“I need to see the loss of pricing power, I need to see that firms are starting to be much more moderate in setting their prices,” she said.