Telegraph
"UK inflation is running at almost twice the rate as that on both the Continent and the US, as the weak pound has pushed up the cost of imports. A spike in global commodity prices, for oil and food in particular, has also fuelled price growth, as well as the VAT rise from 17.5pc to 20pc.
Despite soaring inflation, the Bank has left rates unchanged at their record low of 0.5pc for two full years. The Bank will explain its policy on Wednesday in its quarterly Inflation Report. The Governor has long argued that, excluding imported and one-off cost pressures, "inflation is close to zero and well below target".
However, markets have already begun to de-couple from central bank policy, with sterling rate futures pricing in a first move in May and a total 0.75 percentage point rise by the end of the year. "
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