The Times: King warns on inflation despite fall in oil prices

King highlighted factors likely to keep the door open for another rate rise, singling out attempts by businesses to offset the profits squeeze from energy costs with higher prices. He pointed to a Bank poll that found half of firms intended to raise prices.
While pay pressures had “so far been subdued” despite record energy prices, he said it was not clear that wages had been “sufficiently restrained” to prevent a squeeze on profits.
Companies and individuals needed to recognise that dearer energy — as well as a recent rise in import prices relative to those for UK exports — meant that incomes must decline in real terms, he said.
The Governor also cited an acceleration in overall cash spending across the economy, and rapid growth in money supply, which was now rising at its fastest since 1990....