LONDON - Higher energy costs and more expensive imports mean many Britons need to come to terms with a fall in living standards and it is unreasonable to expect incomes to keep up, Bank of England chief economist Huw Pill said on Friday.

"What we are buying is becoming more expensive relative to what we are selling," Pill told an online briefing hosted by the BoE.

Britain's economy was heading for contraction in the final quarter of 2022, and the medium-term growth prospects were weak, Pill said.

"Maybe the benchmark shouldn't be that wage growth gets back to inflation growth quickly, because there is a need at some point for some parts of society to accept the reality that this real income squeeze is taking place," he added.

The BoE on Thursday raised its main interest rate to 1% from 0.75%, and forecast that consumer price inflation would exceed 10% in the final quarter of this year.

(Reporting by William Schomberg, writing by David Milliken)