By Michael Race & Vishala Sri-Pathma
Business reporters, BBC News
The Bank of England's top economist has said people in the UK need to accept that they are poorer otherwise prices will continue to rise.
Huw Pill told a podcast in the US that there was a "reluctance to accept that, yes, we're all worse off".
He said in response to higher bills and other costs rising, workers had responded by asking for wage increases and businesses were charging more.
UK inflation, the rate of which prices rises, hit 10.1% in the year to March.
The rate dipped last month from 10.4% but that does not mean prices are falling, it means they are rising at a slightly slower pace.
Inflation in the UK has been consistently higher than the Bank of England's target of 2% for some time.
Part of the Bank's job is to keep inflation at its target rate and in response to rising prices it has increased interest rates, which make the cost of borrowing money more expensive. This move, in theory, is suppose make people reduce spending, so that demand for goods cools down and price rises slow.
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