No 10 implicitly rebukes Bank of England chief over wage restraint call, amid unions anger – as it happened

Rolling coverage of the latest economic and financial news

• Latest: Downing Street not calling for pay restraint
• Unite: Workers didn't cause inflation crisis
• Full story: Bank of England boss calls for wage restraint to help control inflation
• Inflation seen hitting 7% by April
• Bailey: difficult period ahead for economy
• British households face record 54% energy bill rise as price cap is raised
• Rishi Sunak tells Britons to brace for even higher energy costs in autumn

Over in the eurozone, retail sales have dropped as the omicron variant and rising inflation hit the economy.

Retail sales volumes fell by 3% in December, a much weaker reading than expected, with Covid-19 restrictions hitting some shops.

Given the lockdown-impacted January 2021, this month's figures were always going to be an improvement but it is still reassuring to see a strengthening market.

Once again it is electrified vehicles that are driving the growth, despite the ongoing headwinds of chip shortages, rising inflation and the cost-of-living squeeze. 2022 is off to a reasonable start, however, and with around 50 new electrified models due for release this year, customers will have an ever greater choice, which can only be good for our shared environmental ambitions."