He said: "The move by the Bank of England to raise interest rates last week (2 November) ensured that, had the governor had to write a letter to the Chancellor because inflation was above 3 per cent, then he would have been able to point to some action already being taken.
“The effects of the devaluation of sterling, particularly on imported inflation in respect of food, are clear. However, these were offset in part this month by a moderating of fuel prices, which meant transport costs were actually lower month on month when compared to September.
"Along with falls in furniture prices this helped keep the inflation rate at 3 per cent."
As a result, Mr Stone said the attention of chancellor Philip Hammond should be directed towards the “productivity challenge, the investment that is required in technology, education and training” as opposed to an imminent rise in rates.
Natasha Wren is an intern at FTAdviser