In a speech given to the Northern Ireland CBI in Belfast, Martin Weale outlined the factors he believes are most important for assessing inflationary pressure in the economy. He focussed on two areas of the economy where inflationary pressure can build and which MPC action can influence. First, pressures within firms, affecting how they set prices. Secondly – and more important in Weale’s view – pressures in the labour market, which affect wage growth. Using data from the CBI’s Industrial Trends Survey, Weale found that measures of firms’ capacity utilisation – how intensively they use their existing physical ... (full story)