UK Daily View: Inflation surge triggers letter from Bank

Chris Giles on dovish public explanation from Mervyn King after inflation hits 3.3%

British households must learn to live with higher prices and without increased wages, Mervyn King warned on Tuesday, as he predicted inflation would reach at least 4 per cent by the end of the year.

The governor of the Bank of England also surprised markets by failing to use the letter to signal a series of interest rate rises to combat higher inflation.