Figures out yesterday showing that inflation hit a seven-year high in March means that interest rates are likely to go up after the election, predicts the Telegraph.

Judged on the consumer price index, inflation rose to 1.9 per cent, just under the Bank of England's two per cent target.

Tony Blair played down the figures, saying: "We have got low levels of inflation by historic standards."

The Bank has postponed its next interest rate decision to May 9, so that it does not clash with the election.