The Bank of England's new chief economist has warned that UK inflation is likely to hit or surpass five per cent by early next year.
Huw Pill told the Financial Times that the bank would have a decision to make at its next interest rate-setting meeting on November 4.
It follows recent comments from Bank of England governor Andrew Bailey who said it will have to act on inflation.
The UK interest rate has been at a historic low of 0.1% since March 2020.
However, it is expected to increase because of rising energy costs, higher wages to fill record vacancy numbers and supply chain disruption.