Iran war will push prices even higher

Interest rate held but 20m are 'economically inactive'

- BY JONATHAN WALKER Whitehall Editor

DONALD Trump’s war against Iran is set to push up prices even if the fighting is over, the Bank of England warned last night.

The Bank’s Monetary Policy Committee held interest rates steady at 3.75%, but warned inflation is to rise because of conflict in the Gulf.

Governor Andrew Bailey said: “Oil prices have fallen in recent days, and that’s encouraging. But they're still higher than before the war.

“Whatever happens in the future, the higher energy prices of the past four months mean there’s already some inflationary pressure in the pipeline.”