Bank official warns of early interest rate rise as Kraft Heinz puts up prices

Baked beans maker is latest firm to talk of food price rises, as inflationary pressures mount

A Bank of England policymaker has warned households to get ready for significantly earlier" interest rate rises as inflation pressures mount, and Kraft Heinz became the latest company to say that food prices will rise.

Michael Saunders, one of the Bank's nine rate-setters, said investors were right to bet on faster increases in borrowing costs with consumer price inflation on course to rise above 4%, adding to signs Threadneedle Street might become the first major central bank to raise rates since the coronavirus pandemic struck.