Bank of England warns high inflation could last longer than expected

Chief economist says risks remain despite fall in wholesale energy prices and UK on brink of recession

The Bank of England's chief economist has warned high rates of UK inflation could persist for longer than expected, despite a fall in wholesale energy prices in recent weeks and the economy on the brink of recession.

Huw Pill said the slowdown in the British economy and sharp fall in European gas prices could help to take the sting out of the highest rates of inflation in more than four decades. Threadneedle Street forecasts headline inflation - which was running at 10.7% in November - will ease from the middle of this year.