Michael Saunders' parting shot as he leaves his position on the Monetary Policy Committee has been to call for interest rates to be hikes to reach 2% within a year.

Saunders was calling for interest rates to rise long before his colleagues agreed with him and he has constantly voted for the size of hikes to be increased.

Saunders believes that rates still have some way to go to reach the neutral point where they are neither stimulating or restricting the economy.

The current wave of inflation which has become a global phenomenon over the course of 2022 is based upon demand for energy as the Chinese machine returns to full output and the war in Ukraine that has had a significant effect on the price of several foodstuffs.

With the oil price beginning to show signs of levelling off, there is a chance that inflation itself will also begin to level off, although it is probably too soon for tomorrow's release of data to do anything but show a further increase in the headline.

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