margins and a squeeze on purchasing powers. that means in terms of real terms, we can consume less and potentially also businesses can invest less because they have less money. the other implication is that if you have higher inflation, potentially you could see higher interest rate which could create another squeeze, interest rate which could create anothersqueeze, if interest rate which could create another squeeze, if you like, another squeeze, if you like, another burden on households and businesses. if the bank of england sees inflation as temporary, which the majority of it is likely to be temporary, it is likely to see through the temporary blip and provided we get inflation coming back to the target, the 2% target by the end of this year, we shouldn t see a major increase in inflation. the worries inflation expectations