"Data for consumer price inflation was released yesterday. It showed that the headline figure rose to 2.5%, its highest since August 2018. The median forecast was for a rise to 2.2%.

With producer prices which show inflation at the factory gate also rising, it is likely that rising inflation will be a feature of the economy for several months.

This could mean that the Bank of England has to review its strategy for supporting the economy into next year, as it could be forced to raise interest rates as soon as Q2 '22.

As central banks in the developed world switch policy from being proactive to reactive, this rising inflation was the issue that caused most concern. Since the recovery began in earnest, there have been conversations being had about just how far inflation can go."

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