The Bank of England will have been cheered by news that earnings growth has hardly changed despite the rise in inflation.  The Office for National Statistics calculates that the annual rate of growth in earnings (excluding bonuses) in April crept up by 0.1 per cent to 3.9 per cent.  Including bonuses, the rate actually fell by 0.2 per cent to 3.8 per cent.

The Bank has been concerned for some time that higher inflation would result in higher pay awards, fuelling an inflationary cycle that it could only stop with higher interest rates.  But, so far, there has been no sign of a rise in wage settlements.  That may mean less money in our pockets, but it might also help the Bank to hold rates while inflation rises.