BoE economist sees interest rates rising higher; retail sales bounce despite inflation – as it happened

BoE's Huw Pill says MPC faces its biggest challenge in 25 years, and indicates further monetary tightening needed to avoid wage-price spiral

• Latest: Former BoE governor criticises Bank's failings
• Pill says further tightening needed as inflation heads to 10%
• UK retail sales rose 1.4% despite surge in inflation
• Alcohol and tobacco sales jump as more people stay at home
• UK consumer confidence falls to lowest level since 1974

David Muir, a senior economist at Moody's Analytics, warns retail sales will come under more pressure this year:

Despite the sharp rise in utility bills, retail sales rose 1.4% in April. But with price pressure set to persist through the rest of the year, households are likely to have to pare back discretionary spending, putting the brakes on economic growth.

For the Bank of England, the challenge will be to walk the fine line between bringing inflation down while not tipping the economy into recession."

This year's Sunday Times rich list again uncovers record wealth and more billionaires than ever before."