"The Bank has factored in these short term upside risks, and believes the high margin of spare capacity will bear down on inflation in the second half of the year. In light of this, we do not expect the Bank to raise interest rates this year in response to what is a short term pick up in inflation."
ALAN CLARKE | ECONOMIST, BNP PARIBAS
"The surge in clothing prices was not expected and RPI was also higher than forecast. While some of the recent inflation is down to government policy – the VAT hike and Budget increases – the MPC will continue to be wary that elevated current inflation dislodges inflation expectations."
IAN MCCAFFERTY | CHIEF ECONOMIC ADVISER, CBI
"Higher rates are likely to remain over the next few months, but inflation is expected to fall back below target within the year as relatively weak demand and spare capacity constrain price increases. And today’s data should have little bearing on the short-term path for interest rates."