Temporary factors including a hike in value-added tax and the depreciation of sterling were the main culprits in keeping inflation higher than forecast, participants at a monetary policy roundtable organised by the Bank of England and the Centre for Economic Policy research on 14 July said.

A summary of the meeting, which was published on Monday, showed that most participants agreed exchange rate depreciation was a key factor in the buoyancy of United Kingdom price levels. "It was suggested by