‘Now it’s consumers’ turn to pay the higher price’

Comment Sebastian Burnside

Two years ago the falling oil price helped push inflation right down to zero. Yesterday it hit a five-year high of 3 per cent. The dramatic turnaround is having profound effects on the economy and has brought the MPC to the edge of action.

Sterling’s fall in value is the main driver of this reversal. In 2015, £1 was worth almost €1.40, but today it will get you closer to €1.10. The cost of imports have gone up