UK not alone in seeing inflation fears rise

Last week’s decision by the Monetary Policy Committee (MPC) to leave interest rates on hold again will have done nothing to ease concerns that the Committee is allowing a serious inflation problem to develop in the UK. On the face of it, these worries are evident in the government bond market, where rising inflation expectations have been driving up bond yields. But the recent rise in UK government bond yields has been no sharper than in other countries.