Money markets price a more than 70% chance of the BoE raising its main rate to 4.5% on May 11 and taking it to 5% by year-end.
At 10.1%, UK inflation is the highest in Western Europe. Energy prices are likely to stop soaring this summer, helping annual inflation comparisons. But lengthy health service waiting lists causing long term sickness have exacerbated a worker shortage linked to Brexit, keeping wage rises high.
