"However, the response of Governments around the world to rebalance their economies in favour of the lower paid who were hardest hit by the pandemic is expected to lead to higher inflation on a more sustained basis.

“The prices of anything from a haircut to a second-hand car are higher than they were a year ago.

"Covid restrictions mean restaurants, for example, can serve fewer customers and they need to charge more to cover their costs.

"House prices are rising in some areas as demand for more space increases as people look to work more from home for the foreseeable future."

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