The Bank of England is right to hold its nerve despite inflation fears

Prices are already rising faster than expected and could top 3 per cent over the coming months, but this is expected to be temporary and the economy is hardly booming as the pandemic continues to cause concern, writes James Moore

Perhaps the Bank of England has being paying attention to Angela Merkel (PA)

Inflation hawks were left hungry at the conclusion of the latest meeting of the Bank of England’s Monetary Policy Committee (MPC).

The MPC warned that prices, already rising faster than expected, have further to go after they spooked the City when they came in at 2.1 per cent for the year to May.

It now expects inflation to surge past 3 per cent but, crucially, only for a “temporary period”, driven in part by commodity prices, over which the Bank has little influence.