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The Bank argues that the main reason behind rising inflation has been the decline in value of the pound, which fell sharply in June last year when the UK voted to leave the European Union. Although the pound has recovered in recent months,cheap ugg boots sale, it is still about 10% lower against the dollar and the euro, which makes imported goods, food and raw materials more expensive. The pound was given a boost last week when the European Union agreed that sufficient progress had been made in Brexit negotiations to allow them to progress to the next stage and to put a transition period in place. The Bank said those developments "would reduce the likelihood of a disorderly exit, and was likely to support household and corporate confidence". However, it said the reaction of households, businesses and markets to developments on Brexit talks "remain the most significant influence on, and source of uncertainty about, the economic outlook".

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