The Bank of England was right, inflation has made us poorer. But whose fault is it? | Larry Elliott

Central banks are keen to blame the surge in inflation on anyone but central banks

Imagine you are a trade union official deep in negotiations with an employer over pay. Inflation is running at 10% and you know the company has lots of unfilled vacancies. You are seeking a wage settlement that at the very least maintains the spending power of your members.

The backdrop to the pay talks is a war that has led to a sharp rise in the cost of energy. Gas and electricity bills have gone up, leaving members of your union with less disposable income.