Catherine Mann is the most hawkish of the independent members of the MPC. She has been voicing her concerns about the effect of high inflation on the economy for some time and voted for the fifty-basis point hike in interest rates at the most recent meeting of the rate-setting committee.

In a recent speech, she spoke of her belief that inflation is becoming embedded in the economy and very soon the Bank of England will be powerless to eradicate it using “conventional” methods.

She agrees with the Governor that there is unambiguous evidence that firms are using the current crisis to maintain, and in some cases, increase their margins. She believes such practices are a prime cause of how inflation will become a “fact of life” again, and must be dealt with as a matter of priority,

It is easy to see obvious examples, like the forecourt price of fuel, but beneath the surface, the practice is becoming so widespread that it is becoming easier to name the sectors of the economy where it is not happening.

Last week the Treasury sold £4bn in Government debt at a price that equated to 5.6% per annum. That is higher than the cost at the height of the Liz Truss inspired crisis that threatened to swamp the economy last Autumn.

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