One of the reasons why US inflation has not risen sharply despite a near US$300 billion increase in import duties “is because import prices going into the US have been falling,” Mann, an external member of the BOE’s Monetary Policy Committee, said on Monday. “In contrast, everybody else is paying more. That is true for the UK as well.”
(Feb 10) : President Donald Trump’s trade wars are contributing to UK inflation as China raises prices on exports to Britain to recover the cost of US tariffs, Bank of England policymaker Catherine Mann said.
In a speech at the Global Interdependence Center in California, Mann dismissed arguments that the UK will benefit from disinflation as China diverts trade from the US, while comparing Britain’s pedestrian growth rate to a “horse and pony.”
