The sub 10% figure that was widely expected when the ONS released inflation data for February today did not happen. Forecasters had pencilled in a single figure announcement just below 10% but alongside Government economists, were dismayed to see another eye watering rise in the rate of inflation from 10.1% in January to 10.4% in February, when the Office of National Statistics released the data earlier.

With food, clothing, alcohol and restaurant prices higher, it is difficult to see how inflation is going to drop by over 7% in the next nine months to match up with the current Government view and many large employers are facing wage claims based on inflation as it is now, not future hopes and dreams.

There aren't that many tools in the Government toolbox to make this go away, outside of raising interest rates which could occur as soon as tomorrow and the question then is by how much? A short sharp 0.50% would be painful to borrowers but 0.25% might not be enough to make a difference.