Bank of England Governor Mervyn King last night warned that the short-run UK inflation outlook had worsened markedly, as it emerged policy makers at the bank voted eight to one in favour of holding interest rates at 5.5% at the committee's last meeting on January 10.

The January 10 meeting minutes, which were published today, came after King told a private dinner in Bristol last night that higher energy, food and import prices were likely to push inflation above the 2% target this year.