Inflation is back with a bang but how long will it stick around?

Cliff Taylor: There are several reasons to be nervous about the outlook

Reopening economies have pushed up energy prices, where supply problems – notably in the gas market – have also been a big facto Photograph: iStock

Reopening economies have pushed up energy prices, where supply problems – notably in the gas market – have also been a big facto Photograph: iStock

Next week fresh official figures will show inflation here running at around 5.7 per cent. This is the highest rate since late 2000, when Bertie Ahern was Taoiseach, Bill Clinton was visiting at the end of his presidential term and Westlife has just had their seventh number one.

Before that, the last time inflation exceeded current levels was in 1985 when Garret FitzGerald was taoiseach and Bob Geldof organised Live Aid.

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