Stagflation looks a racing certainty as worse to come for UK households | Larry Elliott

Inflation in March rose to 7% but April figures will include 54% increase in energy price cap

• Inflation hits 7% in March as Britain's cost of living soars

It is the Bank of England's job to hit the government's 2% inflation target, so from the perspective of Threadneedle Street policymakers there are a number of worrying aspects to the latest cost of living figures.

Let's start with the obvious: the annual inflation rate rose from 6.2% to 7% last month and is now at its highest level since early 1992: that's a long way north of the official target.