"A rise in interest rates at the next meeting of the Bank of England’s Monetary Policy Committee moved from Likely to probable yesterday as inflation data for October was released.

Headline inflation rose to a ten-year high of 4.2%. With the wholesale price of gas and other household bills rising, this is not expected to be the end of rising inflation, and the pressure on the bank to act has ramped up.

Household utility prices rose by 6.8% last month, while there were significant increases in most other sectors. Month on month, inflation rose by 1.1%, its highest monthly increase since 1993.

Andrew Bailey, the Bank’s Governor, spoke on Tuesday of the attention being paid to the employment data, but he must now be concerned that the next round of wage negotiations are going to be difficult and could lead to a more generalized increase in inflation.

With the ECB indefinitely on hold and the Federal Reserve unlikely to tighten until it has completed the withdrawal of additional support, the odds on the UK being the first of the major economies to hike interest rates will have fallen dramatically.

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