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The Bank of England’s chief economist has urged people to accept they are poorer, warning inflation risks remaining stubbornly high.

Huw Pill told a podcast that people and businesses have responded to higher bills and costs by asking for higher wages or charging their customers more money.

His remarks echoed warnings from Bank governor Andrew Bailey that large wage and further cost increases damage the Bank’s efforts to cool inflation.

The headline measure, the consumer prices index (CPI), remains above 10% despite consecutive interest rate increases since December 2021 to help cool demand, and therefore the pace of price growth in the economy.

While much of the inflation can be attributed to factors outside the Bank’s control, such as energy and food costs, it is worried about the ability of secondary effects, such as wage increases, making its job more difficult.

Its argument has consistently been dismissed by unions seeking pay deals to help cushion their members from the cost of living crisis.

Inflation is due to ease naturally, and sharply in the coming months, when the effects of the first big energy bill hikes are stripped out of the inflation data.

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But the latest official figures showed higher wage increases than expected by economists, causing financial markets to price in that the Bank of England would respond with a further interest rate rise next month.

Mr Pill told the Columbia Law School’s Beyond Unprecedented podcast: “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.

Huw Pill ,Bank of England
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Huw Pill is the Bank of England’s chief economist

“You don’t need to be much of an economist to realise that if what you’re buying has gone up a lot relative to what you’re selling, you’re going to be worse off.

“So, somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices whether through higher wages or passing energy costs on to customers etc.

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“What we’re facing now is that reluctance to accept that, yes, we’re all worse off and we all have to take our share; to try and pass that cost onto one of our compatriots and saying, ‘we’ll be alright, but they will have to take our share too’.

“That pass-the-parcel game that’s going on here, that game is one that’s generating inflation, and that part of inflation can persist.”

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The father of Jihad al Shamie has called for unity, one week on from deadly attack

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The father of Jihad al Shamie has called for unity, one week on from deadly attack

The father of the Manchester synagogue attacker has called for unity, as the community marked one week on from the assault which claimed the lives of two men.

People gathered outside the Heaton Park Hebrew Congregation in Crumpsall at 9.30am, the time of the attack last Thursday, to pray and mourn the victims.

Pic: PA
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Pic: PA

Pic: PA
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Pic: PA

Jihad al Shamie was shot dead by police after launching his car and knife attack as worshippers gathered on Yom Kippur, the holiest day in the Jewish calendar.

In a statement posted on Facebook, al Shamie’s father Faraj wrote: “The recent tragic act of terror has brought deep pain – to our family and to the families of the victims. Our hearts and prayers are with them.

“No one should ever experience such suffering again. We must all stand together – united, vigilant and compassionate – to prevent such acts and protect the peace of our communities.”

Adrian Daulby, 53, is believed to have been shot dead by police while attempting to prevent al Shamie from entering the synagogue.

Mervyn Cravitz, 66, also died while trying to keep the attacker from entering the building. Three other people remain in hospital.

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Manchester synagogue terrorist: what we know now

Rabbi Daniel Walker told the congregation that “evil will not prevail” and called for “deep resolve” from the community.

There was applause from the crowd for Greater Manchester Police, with a large presence of officers at the event, for their response on the day of the attack.

Raphi Bloom, a board member of the Jewish Representative Council, said there was a feeling of anger in the community as “we were screaming this would happen and no one listened”.

He told Sky News: “Our feelings are still of mourning, of fear and of isolation. We feel very alone. We’re very, very angry that this was allowed to happen and fearful that it will happen again.

“But we won’t be cowed and we won’t be beaten.”

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All six people who were arrested and questioned by police on suspicion of terrorism offences have now been released without charge.

Counter Terrorism Policing North West Assistant Chief Constable Rob Potts said: “This does not mean our investigation has concluded.”

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Police: Synagogue attacker ‘made 999 call’

Police have confirmed that al Shamie dialled 999 during the attack, claiming responsibility and pledging allegiance to Islamic State.

They have reiterated that he had never been referred to the government’s anti-terror Prevent programme and was not known to counter-terror policing.

“This remains a live counter terrorism investigation,” they said.

Events have been taking place across the country to mark one week on from the attack.

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Phones creating ‘epidemic of disconnection’ in families, says Princess of Wales

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Phones creating 'epidemic of disconnection' in families, says Princess of Wales

The Princess of Wales has said smartphones and computer screens create “an epidemic of disconnection” within families.

Kate’s words – in an essay co-written with a Harvard professor – come ahead of a visit to Oxford to highlight her work on early years education and support.

In the piece, she says that “while new technology has many benefits, we must also acknowledge that it plays a complex and often troubling role in this epidemic of disconnection”.

“While digital devices promise to keep us connected, they frequently do the opposite,” writes the princess.

“Our smartphones, tablets, and computers have become sources of constant distraction, fragmenting our focus and preventing us from giving others the undivided attention that relationships require.”

Emphasising how she believes technology can interfere in family life, she adds: “We sit together in the same room while our minds are scattered across dozens of apps, notifications, and feeds.

“We’re physically present but mentally absent, unable to fully engage with the people right in front of us.

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“This technological interference strikes at something fundamental: our undivided attention is the most precious gift we can give another person. Yet, increasingly, it’s the most difficult gift to offer.”

The Prince and Princess of Wales have previously spoken about the potentially harmful effects of social media.

Kate says technology is increasingly interfering in family life
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Kate says technology is increasingly interfering in family life

In a recent interview, Prince William revealed that their three children, George, Charlotte and Louis, currently don’t have mobile phones, and that they try to have dinner together.

Kate’s essay, titled The Power of Human Connection in a Distracted World, was released by her Royal Foundation Centre for Early Childhood and written in collaboration with Professor Robert Waldinger.

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Kate first met the Harvard academic in 2022 and he’s worked closely with the Royal Foundation ever since.

“We live increasingly lonelier lives, which research shows is toxic to human health, and it’s our young people (aged 16 to 24) that report being the loneliest of all, the very generation that should be forming the relationships that will sustain them throughout life,” write the princess and the professor.

Later today, the princess will visit Home‑Start Oxford to meet volunteers and families, and talk about how they are using resources and films produced by the Centre for Early Childhood to help parents and children.

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Murderer jailed for attacking Glasgow man with ‘napalm cocktail’ before stabbing him in heart

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Murderer jailed for attacking Glasgow man with 'napalm cocktail' before stabbing him in heart

A murderer who threw “prison napalm” over a man before stabbing him in the heart has been jailed for at least 20 years.

Gavin Gallagher, 33, claimed he was acting in self-defence when he launched the boiling water and sugar mix over Stephen Gray, 23, before knifing him.

However, he was convicted of murder and accused of staging the crime scene in an attempt to cover his tracks.

In his sentencing statement, Judge Lord Mulholland told Gallagher: “I was not surprised that the jury rejected self-defence and provocation.

“It seemed to me that your defence of self-defence was staged, and your lies unravelled.”

Stephen Gray. Pic: Police Scotland
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Stephen Gray. Pic: Police Scotland

The fatal attack occurred at a block of flats in Glasgow’s Southcroft Street on 3 November 2023.

Lord Mulholland said Mr Gray was bare chested when Gallagher threw the boiling water and sugar mix over him.

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The concoction is often referred to as “prison napalm” due to being used by inmates during assaults.

The judge said the vast majority of burns were to Mr Gray’s back.

Lord Mulholland said: “He was bare chested, and the burns caused by what you did must have been very painful. You can see that from the photographs of his injuries.”

Gallagher then stabbed Mr Gray twice with a large kitchen knife.

The judge said: “One of these blows penetrated his heart and caused massive bleeding which led to his death. This injury was unsurvivable.

“You then did what you could to set up a defence of self-defence in an attempt to cover your tracks.

“You placed a knife alongside his dying body and said to a neighbour that it was the deceased’s knife.

“You told anyone who would listen that you killed him in self-defence.”

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Gallagher was convicted of murder at the High Court in Glasgow last month.

He returned to the dock for sentencing on Wednesday, when he was handed a life sentence with at least 20 years in jail.

Detective Superintendent Hannah Edward said: “Our thoughts remain with the family and friends of Stephen and while we know nothing can change what has happened, I hope this brings them some degree of closure as they try to move forward.

“This was a shocking attack and Gallagher will now face the consequences of his despicable actions.”

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