LONDON, (Reuters) – Post-lockdown worker shortages in Britain could cause wage inflation in certain sectors. However, the Bank of England Deputy governor Ben Broadbent stated Tuesday that while short-term inflation may be fuelled by higher wages in certain areas, long-term stability will prevail in the labor market.

Broadbent said that “I believe those strains will reduce over time,” to a group of legislators who were considering the lack of labor in the agricultural and food sectors.

The (negative) influence on participation might go away. It is clear that higher wages are a result of some of these (certainly in some sectors).

Broadbent stated last week that the BoE expected British inflation to rise almost 5% by April. That’s more than double the 2% target. Broadbent added that wage pressures played a role in the increase in short-term inflation.

He said that a rise of prices in companies with fewer workers would likely lead to lower output.

The markets are clear in the end. Broadbent explained that the sector’s output will be reduced if there aren’t enough people.

It will only be possible to limit it by raising wages and prices.