Bank of England warns of ‘apocalyptic’ global food shortage Business

Mr Bailey’s comments are likely to increase pressure on the Bank from Tory MPs who are growing infuriated that he did not act sooner.

Many experts believe the institution moved too slowly to raise interest rates as prices soared last year, and it has also been criticized for not scaling back its printing quantitative easing program. currency over the past decade.

The grim assessment will likely add to pressure on the Treasury to hold an emergency budget to tackle the cost of living crisis, after Rishi Sunak, the chancellor, opted to raise taxes in while incomes were reduced.

Food prices are already rising on fears of disruption. Ukraine supplies large parts of the Middle East with grain, and there is a risk that families will not be able to afford food unless a solution is found. Wheat prices rose 6% on Monday.

The governor also admitted the Bank had little hope of bringing inflation back to its 2% target, with prices already climbing 7% and another surge expected in the coming months.

Asked by MPs on the Treasury Select Committee if he felt ‘powerless’ to control inflation, Mr Bailey said: ‘Yes’.

He said: “It’s a very very, more than uncomfortable place – I’m trying to think of an even worse word than that – it’s a very, very difficult place to be.

“To forecast 10% inflation and say there’s not much we can do at around 80%, I can tell you that this is an extremely difficult place to live. We need to recognize the reality of the situation we face.