Reuters reports that Bank of England Chief Economist Andy Haldane has warned there is a chance that cost pressures faced by British companies lead to high prices that become embedded in pay demands.

"There's again a chance that those price pressures could get embedded in pay packets and then we have something closer - not on the same scale remotely - but something closer to the sort of 'wagey-pricey' spiral that we've seen at times in the past, the Seventies and Eighties," Haldane said.