RISING FOOD PRICES IS MAJOR WORRY SAYS GOVERNOR OF BANK OF ENGLAND

The possibility of further rises in food prices is a "major worry" for the UK and the global economy, the governor of the Bank of England Andrew Bailey has warned (BBC News). 

Speaking in front of the Treasury Select Committee, he also said that a "very big income shock" from the increase in global goods prices would hit demand in the economy and push up unemployment.

In addition, Mr Bailey indicated that the Bank would raise interest rates far enough to ensure inflation falls from an expected peak of more than ten per cent in the autumn back to its two per cent target (Financial Times). 

UNEMPLOYMENT DROPS TO 50-YEAR LOW

Unemployment has fallen to the lowest in nearly 50 years with more vacancies than unemployed people in the economy for the first time on record, according to new figures from the Office for National Statistics (The Times).

At the same time, wages suffered a sharp fall between January and March. Earnings, when adjusted for inflation, dropped by 1.2 per cent in the biggest fall since 2013 (BBC News).

NEWS IN BRIEF

Labour will try to force a parliamentary vote to introduce a windfall tax on oil and gas companies through an amendment to the Queen’s speech (The Guardian). 

Consumers are reacting to the cost of living crisis by trading down in both stores and products, switching from supermarkets to discounters and from branded to lower priced and private label products, according to a report from McKinsey (Reuters). 

The Treasury is considering a new tax on imports from countries with high carbon emissions to ensure domestic businesses who face high domestic carbon costs are not undercut by cheap imports (Daily Telegraph).

Some of the poorest households in England and Wales are struggling to access council tax rebates to help offset their rising energy bills, the charity National Energy Action has warned (BBC News).