The threat of inflation is not so imminent as No 11 would have us believe

While higher interest rates would add to the cost of financing the debt burden, central banks are unlikely to raise them soon There was a warning after last week's budget that Rishi Sunak's recovery plans could be blown off course by a rise in inflation of such strength that it would force central banks to raise interest rates. A modest increase of just 1% in the interest paid on government debt would add between £20bn and £25bn to the cost of financing the UK's debt and sink any hopes Sunak h...