Inflation Fuels Calls for Rates Rise

Summary


The Bank of England is under renewed pressure to raise interest rates after latest figures showed inflation has risen to 4 per cent, double the government's target.

The Consumer Price Index (CPI) rate of inflation hit 4 per cent in January, up from 3.7 per cent in December, as the increase in VAT and the soaring cost of crude oil pushed up the cost of living.

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Extract


Inflation Fuels Calls for Rates Rise

The Bank of England Governor, Mervyn King, admitted in a letter to Chancellor George Osborne that there was a "great deal of uncertainty" over the inflation outlook and there w...

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