Mervyn King, the governor of the Bank of England, will have to write another letter to the chancellor of the exchequer George Osborne explaining why inflation is still above its 2 per cent target after it remained unchanged in August at 3.1 per cent. Chris Giles, economics editor, talks to Daniel Garrahan about why inflation is staying so stubbornly high and why it will exacerbate the split in the Bank of England’s monetary policy committee.