The Office for National Statistics said annual consumer price inflation rose to 3.3 percent in November from October's 3.2 percent, the 11th consecutive month that it has been more than one percentage point above the BoE's 2 percent target.

An unchanged figure was generally expected but with the VAT rate increasing from 17.5% to 20% from January 1st, it is hard to see how this will come down in the short or long term.

Apart from the VAT increase, utility companies are already passing on the higher energy costs to the consumer and significant price increases have been seen in the Food, Clothing and Furniture sectors.

The Retail Prices Index that includes mortgage interest payments - rose to 4.7% from 4.5%.

With the Bank of England recently forecasting Inflation above 3% and with all the recent stats pointing towards a higher inflation rate before we have any sign of a sub 3% rate, what are we going to see first? the target CPI rate of 2% or the somewhat closer 4%.