You are here: Home - Uncategorized -

Inflation up to 3.1%; a letter is required forthwith

0
Written by:
17/04/2007

The Governor of the Bank of England, Mervyn King, will have to write a letter of explanation to the Government after the rate of UK consumer price inflation rose sharply to 3.1% last month.

The Consumer Prices Index (CPI) is now more than 1% above the Government’s target of 2% and, given that this is the case, a letter is required from the Bank of England to the Government giving a full explanation for the situation.

Figures from the Office of National Statistics (ONS) also show that the wider measure of inflation, the Retail Price Index (RPI), rose to 4.8% in March, up from 4.6% in February.

Many analysts believe that the figures could spark more interest rate rises as the Bank of England tries to bring inflation under control.

“I expect the rate to rise again in May,” said City analyst Colin Perry. “The Government has a morbid dread of inflation and will want the Bank of England to do all in its power to keep the lid on it. If inflation runs out of control, Gordon Brown’s excellently run economy will be in danger – and so could his leadership bid.”

The ONS said that CPI inflation jumped 0.5% over the month, with rising prices for milk, petrol and furniture the main drivers behind the increase.

 

 

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Hackers drive shoppers crackers and out of the stores

Customers who lose data from their debit and credit cards to hackers are moving their business elsewhere, rather than risk doing...

Close