In all probability, Bank of England Deputy Governor Jon Cunliffe said on Monday, the Ukraine invasion will intensify the prolong the surge in inflation and tighten the squeeze on household incomes, reported Reuters. A drop in demand through household consumption and business investment will, to an extent that is not yet clear, be greater than be thought in February, he added. 

Additional Remarks:

"It's possible that some labour market weakness will prove to be structural rather than cyclical."

"The lower participation has been compounded by lower migration either as a result of the pandemic or Brexit."

"There is no material evidence of sectoral mismatches in the labour market, which has remained highly flexible."

"What we have seen in the labour market coming out of Covid has very much been a story of weak labour supply and strong labour demand."

"The impact of higher energy prices will not be felt evenly, these factors could amplify the hit to aggregate demand."