He sounded a warning to unions, governments and businesses that it was ' imperative' to avoid the current high inflation rates sparking a wage-price spiral.

In 2012, it was a year of very disappointing economic growth because of the euro crisis and the aftermath of high inflation.

They fear high inflation will delay moves to pump more money into the economy.

There's little indication of that triggering high inflation.

The stagnant economy and persistently high inflation is likely to last for another two years, according to the bank.