UK wages will soon lag behind prices – will the Bank take action? | Larry Elliott

Mark Carney appears unconcerned about inflation, but he will have to justify his inactivity as real incomes fall

Judging by his comments, Mark Carney is blissfully unconcerned about inflation rising above its 2% target for the first time since 2013. The governor dismissed the unexpectedly sharp rise in the cost of living as a "single data point" when quizzed about it at a conference on ethics in banking held at the Bank of England. "We are talking about much bigger issues", Carney added.

There's little doubt that voters are unhappy about the morals - or lack of them - of those working in the financial services industry. But they are also concerned about living standards. After the latest rise, the annual rate of inflation is the same as annual growth in average earnings. Next month, wages will lag behind prices and real incomes will start falling. For millions of voters, there are not many bigger issues than that.

Related: Rising food and fuel prices hoist UK inflation rate to 2.3%