Many economists wrote earlier this week that the decision to raise interest rates would mean a peak of 5.25% or 5.5% at most (here).
Not me, even though not a 'real' economist, it is painfully obvious that the macro-economic situation has tipped.
Today the ONS, whom are not as neutral as they say they are, have released their inflation figures (here). These make for poor reading, CPI up to 3%, RPIX up to 4.4%. This means inlfation has taken hold at the highest level since the disastrous peg to the Mark (see ERM) in 1991.
There are few downward trends, with the Government having to hope fuel costs fall back significantly and that clothing falls in price. The first is unlikley given the political instability of Iraq, Iran and Venezuela.
The second is unlikely as the sales and Christmas are over, meaning retailers will move away from discounting to selling full price summer ranges.
So be prepared for 6% interest rates this year.
If all that does not convince you, read this article by the investment strategist at Goldman Sachs, courtesy of the Telegraph.