Britain's inflation problem may be becoming increasingly difficult to reverse, according to one of the Bank of England's senior policymakers.
Catherine Mann warned Tuesday that inflation running above the central bank's 2 percent target appears to have become embedded in the British economy.
Reuters reports that her comments reinforce concerns that price pressures could remain persistent even as policymakers attempt to bring inflation under control.
The warning matters directly to households because stubborn inflation can keep borrowing costs elevated for longer.
Higher interest rates affect mortgages, business loans, credit cards and other forms of borrowing, while higher prices continue to reduce household purchasing power.
Britain has experienced repeated inflation shocks in recent years, making the Bank of England's decisions particularly sensitive for consumers and financial markets.
Investors will now watch incoming economic data closely for signs that inflation is weakening or remaining persistent.
Any evidence that price pressures are becoming entrenched could reduce the chances of rapid interest rate cuts.
