BoE/Dhingra: The increase in customs duties could lead to a decrease in inflation.

Swati Dhingra, a member of the Bank of England's Monetary Policy Committee, stated that the increase in tariffs imposed by the US on imports from other countries could lead to a decline in inflation in the UK. Dhingra noted that global prices fell in response to rising tariffs during Donald Trump's first presidential term, as sellers in China and other countries reduced their prices to find buyers elsewhere.

She highlighted that since 35% of British imports are invoiced in US dollars, a weakening of the pound against the dollar would intensify downward pressure on UK prices. "We anticipate a negative overall adjustment in UK prices. We are facing a situation where global prices have generally decreased. Add to this the reality that global activities will also be adversely affected," she remarked.