Mr Bailey, the Bank of England’s governor, warned there were signs that inflation could continue and the central bank’s monetary policy committee (MPC) may need to hike borrowing costs by next year. Speaking to the Society of Professional Economists in London, he said: “Recent evidence appears to have strengthened that case [for an increase in interest rates] but there remain substantial uncertainties and we are monitoring the situation closely.”

       The comments come against a stark backdrop of rocketing fuel costs and the possibility that higher transport costs will push up the price of food, particularly in the run-up to Christmas.

       Last week the MPC voted to keep interest rates low at 0.25 percent after concerns that the rebound in economic growth since the early part of the year was beginning flatten out.

       Mr Bailey warned the economy was still on a journey to a post-Covid situation and policymakers would need to put in the “hard yards” to navigate a route to safety.

       FOLLOW BELOW FOR LIVE UPDATES...