Bank of England Governor Andrew Bailey, who is currently testifying before the UK Parliament's Treasury Select Committee, said on Wednesday that the very tight UK labour market is a concern and has the potential to put upwards pressure on wage negotiations. 

Further Remarks:

"Some aspects of current inflation ought to be transitory, such as energy and supply chains."

"Need to keep in mind inflation pressure from the labour market, this influenced my thinking on December rate rise."

"The UK labour market is very tight in terms of supply."

"This week's labour market data shows unemployment broadly back at pre-covid levels, inactivity higher."

"We don't know if people will come back to the labour market or retire early."

"Public sector expansion has created more competition for labour."

"The total labour force is probably smaller than we anticipated, cannot separate out covid and Brexit effects."

"The very tight labour market is a concern."

"The tight labour market has the potential to put upward pressure on wage negotiations."