Andrew Bailey says retailers are cashing in on inflated gas prices.

Stopping retailer price gouging will help reduce inflation and be more fair to consumers, Bailey says. Photo: Holly Adams/Getty Images Europe

Andrew Bailey has accused some retailers of speculating on inflated gasoline and diesel prices, warning that regulators must address the issue to help bring skyrocketing prices down.

The Bank of England governor, who is criticized for presiding over prices rising in major countries, says in a message that will help families 'save money' and deal with the rising cost of living.

«If you look at prices for gasoline, some gasoline sellers may charge too high a price for it. ”, he told the BBC.

“It is important [not to overprice], it helps us with inflation, but it will be fairer if these issues are resolved.”

gasoline and diesel prices

Wage growth accelerated again last month, a new challenge to Mr. Bailey's efforts to ease inflationary pressures that are ravaging the economy.

Company executives told the Bank of England that annual wage growth reached 7.1% in June, a sharp increase. compared to 6.7% reported in May and is a sign that tensions in the tough UK job market are far from easing. Corporate employment rose 4.1% year on year from 3.1% in May.

This is another sign that inflation is spreading across much of the economy, undermining the Bank's containment efforts prices. Last month, Mr Bailey blamed «unsustainable» wage growth and companies «seeking to restore profit margins» of fueling inflation.

Executives told a monthly survey by the Bank of England Decision Makers Group that the prices they charge customers rose 6.9% year on year, down from 7.6% in May, as they expect inflation in the economy decline overall to 5.7% for the year.

Price growth was 8.7% y/y through May, well above the Bank of England's target of 2%

Mr Bailey's comments come just days after the Competition and Markets Authority (CMA) accused Britain's biggest supermarkets of making around £900m by not passing on falling wholesale fuel prices to consumers at gas stations.

According to the supervisory authority. Tesco, Sainsbury's, Asda and Morrisons were making an average of 6p extra profit per liter of fuel sold, keeping their margins higher due to lack of competition.

Mr Bailey also said the pain from the rate hike will be felt unevenly across the country as he acknowledged that «inflation is too high».

The Governor said young families are likely to see the cost of living rise faster than the older generation because they are more likely to get mortgages.

“Around the world, young people tend to borrow more money and as we all get older, we tend to have more savings. That's how people's life cycles usually work.

«So it will have more of an impact on young people, young families.»

Threadneedle Street raised rates 13 times to 5% in the fight to cool the economy .

Investors are now betting that the Bank will be forced to raise rates to a 25-year high of 6.5%, a level that economists warn will trigger a recession.

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The government has announced plans to force merchants to publish fuel prices online to encourage competition in the sector and increase transparency.

However, supermarket executives said the CMA had not taken into account their own skyrocketing overheads, including salary and rent.