Rate-setters on the Bank of England’s monetary policy committee are split over the outlook for inflation as figures are expected to show a rise in consumer prices above 2 per cent last month.
Four members of the nine-strong MPC told MPs on the Treasury select committee that policy changes announced in the budget, in addition to the threat of tariffs from the US president-elect Donald Trump on UK exports, and a fracturing global trading environment, could drive inflation up or down in the coming year.
Official figures released on Wednesday are likely to show a rise in headline inflation from 1.7 per cent in September to as high as 2.2 per cent last month on the back of an increase in household energy bills.
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