Bank of England governor Andrew Bailey had fired a warning shot at retailers engaged in greedflation, by warning there is some evidence that retailers are overcharging customers.
In an interview to the BBC’s Newsround programme, Bailey admitted there are issues regarding overpricing.
The governor said, “If you look at petrol prices, some sellers of petrol have possibly been charging too much for it.”
Regulators have an important role to play tackling overcharging, Bailey added, “It helps us with inflation, but it’s just fairer if these things are tackled. This is having very difficult effects. So it’s important that these steps that can be taken to make things fairer, and to save money for people by doing so, are taken.”
Earlier this week, Supermarkets have also been accused of greedily fueling inflation at the expense of their customers after the competition watchdog said drivers were paying more for petrol and diesel than before the Covid pandemic because of “weakened” competition.
Furthermore, Bailey admitted inflation remains high and the impact of rising interest rates have on UK households.
“Inflation is way too high. We have a target that prices should rise by no more than 2 per cent. It is, sadly, above that at the moment, above 8 per cent. I understand it is difficult. People are having to make very difficult choices about what they buy, what they need for their lives,” he said.
“It will have more of an effect on young people, younger families. I do understand this. We want to get inflation back to where it needs to be, and then we can assess what level interest rates should be at,” he added.
Bailey added that he expects inflation to go down.
“What we have to do is set the interest rate to get it (inflation) all the way down to 2 per cent.”
“I can’t give you a date as to when interest rates are going to come down because that really depends upon what happens over the period of time ahead. But getting inflation down is the most important thing that we have to do,” he said.