MNI BRIEF: BOE Unable To Track Supply Chains - Dhingra

Global and supply side factors are been key drivers of recent inflation but monetary policy has typically focused on domestic and demand price dynamics and it has been almost impossible to accurately trace supply-chains, Bank of England Monetary Policy Committee member Swati Dhingra said Thursday.

Speaking at a New Economics Foundation event Dhingra highlighted the challenges the BOE and other central banks face when supply factors have been resurgent in driving inflation.

"It's still almost impossible to trace the supply-chain carefully for even ....a  handful of products in the consumption basket," she said adding that the techniques for analysing these chains needed to be developed (See MNI INTERVIEW: Central Bank Supply-Chain Data Old, Incomplete )

Not only does the BOE have gaps in its supply side analysis but "in terms of data and modeling tools to study these inflationary dynamics that come about as a result of global and supply side factors, but also that a lot of our tool kits that we rely on are much more effective at managing demand rather than managing supply side," she said.