Things could get messy

Read More On This Is Money

To many, the official data today that showed an increase in inflation last month to 2.1 per cent will not be particularly interesting.

The jump was driven partly by price rises in restaurants, hotels and computer games as consumers continue to prioritise activities over buying stuff. 

But alarm bells started to ring when the pound failed to react. Or as Sam Fuller from Financial Markets Online put it, ‘Sterling found its mojo – only to misplace it within minutes.’

Read the full story here.