The banker told MPs on the House of Commons Treasury committee the war in Ukraine was a factor that would likely see a sharp rise in prices being paid by consumers in Britain and around the rest of the world.
He said: “I’m afraid the one I’m going to sound rather apocalyptic about is food.”
Ukraine is one of the world’s biggest suppliers of crops such as wheat and maize, as well as cooking oil.
Mr Bailey warned that while the war-torn country was still managing to produce goods in the face of Russia’s invasion, there was a struggle to ship supplies out of the country.
More to follow…