Expert warns of spiralling UK inflation

British households were warned against a return to the soaraway inflation of the 1970s today as a Bank of England rate-setter dampened short-term hopes of rate cuts.

Monetary Policy Committee (MPC) member Tim Besley - who pushed for a rate hike in July - said the current price spiral "had to be nipped in the bud" to avoid a return to the era of 'Saturday Night Fever' and 'Starsky & Hutch'.