Price rises in the economy have turned out to be stronger than experts and officials bargained for - and now no one can be sure whether the rampant price increases seen in previous decades really are a thing of the past.
COVID: Tom Kerridge warns 'restaurants will crumble' after hundreds cancel bookings due to new coronavirus restrictionsUnderlying everything is high energy prices, and given gas prices have jumped back up to near record highs, it's unclear quite when this price pressure abates.Naturally all eyes now turn to the Bank of England, which announces its latest interest rate decision tomorrow.
And with the economy potentially expected to contract in the face of the new variant - or rather people's behaviour in the face of it and the tightened restrictions introduced by the government - it's no longer clear that the Bank won't sit on its hands once again.Plan B: How will firms be affected?Even with the new variant, no central bank can afford to be relaxed when prices are rising as quickly as this.
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