UK inflation has increased – but don't bank on a rate rise just yet

Though the cost of living figures were stronger than expected, an acceleration in wage growth is far more likely to trigger a hike in borrowing costs

The Bank of England says interest rates are going up. Not quite yet, but at some time in the not too distant future, the monetary policy committee thinks the conditions will be right for borrowing costs to go up.

Mark Carney, the Bank's governor, has made it clear that the timing of that decision will depend on what the economic data looks like. Unsurprisingly, therefore, every piece of news is seen as having a bearing on whether interest rates will go up in late 2015, early 2016 or later.

Related: UK inflation rise fuels debate over higher interest rates