The Bank of England continues to diagnose persistent inflation as the major danger facing the UK economy. However, it's an increasingly delicate balancing act, and there's a real risk the economic cure might end up being worse than the disease.
To be fair the picture is murky. The market expects Friday's GDP data to show the UK returned to growth in the first quarter, ending last year's short-lived recession. But a 12% cut in the energy price cap will probably drag inflation back below the bank's 2% target this month - at least temporarily.
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