The Bank also said that there were signs the supply chain crisis was starting to hamper the economic recovery, and revised down its growth forecast for the third quarter by 1%.
It came as the Bank’s Monetary Policy Committee held interest rates at 0.1%
Despite the inflation forecast a rate rise was not yet needed, the MPC said.
Factors driving higher inflation were still expected to moderate next year, the policymakers said.
Supply constraints were hitting recovery and there are signs “cost pressures may prove more persistent.”
The Bank said that supply constraints were “evident in surveys showing historically lengthy supplier delivery times and backlogs of work, significant material and labour shortages in a number of sectors, and lower levels of inventories”.
Blimey … is there no good news … 