LONDON (Reuters) - Inflation will continue to fall this year, Bank of England Governor Mervyn King said in comments published in the south west regional newspaper Western Morning News.
The comments, seen on the Internet on Thursday, are in line with the central bank’s forecast but came in tandem with official data showing consumer price growth eased in June, but perhaps not as fast as policymakers might want.
“We have to look through the short term volatility caused by gas and electricity prices,” King said in the newspaper’s Wednesday edition.
“In our view, inflation will come down during the rest of the year. It is likely to drop further but we will have to wait and see.”
Inflation eased to an annual 2.4 percent in June from 2.5 percent in May, but core consumer price growth hit a decade high.