Letter highlighting the Bank of England's shortsightedness regarding companies' profiteering

Andrew Bailey is not being truthful when he claims that there's no proof to support the idea that companies are exploiting the current period of higher prices. This is according to a critical blog post. Bailey, who runs the Bank of England, has urged firms to not increase prices. If they do, he warns, higher interest rates might follow.

What is he after? He seeks a confession signed by the CEOs of 350 firms that are listed on the London Stock Exchange. These firms have experienced a rise in their average profit margins which have gone up from 5.7% to 10.7% between the first half of 2019 and the first half of 2022. The confession should admit to their stealthy and excessive price increases, which have benefited shareholders at the expense of consumers. It seems apparent that Bailey has ignored Procter & Gamble's consistent 17% profit margin for the last three years, as well as research conducted by Unite, and American research revealing that most price increases had come from companies striving to maintain profit margins. The latter had already been reported by The Guardian three months ago on December 14th, 2022, when the Bank of England had been planning to raise borrowing costs as a means of combatting inflation.

Bailey isn't aware of the recent home insurance quote I received, which was almost double the amount I paid to the same company last year, despite not making any claims. Upon inquiry, the representative informed me that it was due to my postcode, which hasn't changed since last year. This experience surprised me greatly. Bernie Evans from Liverpool.