Bank of England set to announce third interest rate rise as inflation skyrockets | Personal Finance | Finance

“The committee has previously made it clear that it is more concerned about the risk from inflation than the danger of weaker economic growth and the recent jump in commodity prices has only heightened that risk.

“Increases in the price of energy products and a swathe of commodities, from wheat to aluminium, will send inflation sharply higher in the next few months and keep it high for the rest of the year.”

Referring to the energy price cap and ongoing Ukraine conflict, the economist added: “Rather than falling by about five percent in October as we expected it to, Ofgem’s price cap may rise again by another 30 percent (or more), raising the chance of a second inflation peak in October.

“All this means inflation will probably be above five percent at the end of 2022, and it may not be until the end of 2023 that inflation is back at the two percent target.