As well as rising gas prices Dr Broadbent highlighted the role of increased spending on goods during the pandemic as a factor in prices increasing.
He explained: “In the UK, for example, retail sales grew pretty strongly through 2020, even as spending on services collapsed- if you can’t go to the cinema, why not spend those savings on a new TV?”
With inflation already running at over double the Bank of England’s two percent target speculation had been building for interest rate rises in the coming months, potentially as early as December this year.
However, uncertainty over Covid restrictions with the spread of the new Omicron variant has once again cast doubts over central bank policy with many analysts now speculating the Bank may hold off once again.