Growing inflation in UK’s service-based economy was never going to be easy | Larry Elliott

High interest rates are needed to reduce wage inflation but productivity improvements are harder to chisel out

I'm due a haircut and in the past week received a message from my barber containing the news that the price will be 10% higher than the last time I went for a trim.

If I call in for a coffee on my way to work it will be a similar story. After recent price rises, I can expect to pay the thick end of 4 for a flat white.