Inflation is still far too high. The Bank of England will have to act

Food inflation has hit a 45-year high of 19.2 per cent. The interest rate-setting Monetary Policy Committee will also be concerned that ‘core’ inflation hasn’t fallen, argues James Moore

Soaring food and non-alcoholic drink prices kept UK inflation in double-figures last month (PA)

Remember that classic line used by the makers of Jaws 2 to promote the film? Just when you thought it was safe to go back into the water?

Annual inflation, as marked by the Consumer Prices Index (CPI), has landed at 10.1 per cent. Still in double figures when the expectation had been for it to dip below into single digits.

The week had started off so well, with Deloitte reporting a marked turnaround in the confidence of the UK’s leading finance directors. Its regular poll found real optimism among them that the worst may finally be over for rising prices.