There's more elsewhere in the interview. "We don't have an underlying inflation problem," urges Cable, "The Bank's job, as the governor keeps pointing out, is not to look at today's numbers, but to look 18 months ahead." I assume his point is that inflation is expected to fall back to target levels within the next two years, after oil prices and consumption taxes settle back to normal. But I wouldn't have so much confidence in the Bank's ability to "look 18 months ahead," if I were him. Citi recently put together a graph which shows the difference between the Bank's inflation forecasts and the outturn a year later. It doesn't speak well of their soothsaying abilities:
Besides, other forecasters have inflation remaining above target for the rest of this Parliament. Forget "underlying" — this could be a political problem for the coalition for some time to come.