Until the numbers get big, inflation usually hovers below the radar. When it soared to 25 per cent in 1975, it dominated conversation in homes and Parliament. Recently, there has been more chat about the rising cost of living among economists, and some analysts are describing the short-term risk of higher inflation as 'scary'. The Consumer Price Index stood at 0.7 per cent in March and is expected to rise sharply towards the Bank of England target of 2 per cent in the coming months, due to temporary factors, mainly energy prices. It is then expected to hover slightly below that level in two and three years time. So there seems to be no reason for a imminent inflation panic.