Inflation dilemma for Bank of England is that fighting it may be the wrong call

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Inflation is back and it’s led to carnage in financial markets, concerns about personal finances and consternation among central banks. So what’s causing it, how long might it last and what should be done — if anything — to control it?

The causes of the rise in UK inflation — from about 0.5 per cent at the end of last year to more than 3 per cent in August — have been clear. Energy prices are the number one factor, with petrol prices up 17 per cent this year and more to come amid shortages and rising global oil prices. Gas and electric bills rose 8 per cent in the spring, Ofgem’s price cap was hiked by more than 12 per cent on Friday and

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