Inflation on the rise again

CPI (Consumer Price Index) rose to 4.5% in April after its fall to 4% in March. CPI is now at its highest level since October 2008. However, RPI (Retail Prices Index) which includes the cost of borrowing actually fell slightly to 5.2% from 5.3% in March. This rise in CPI was greater than many experts had predicted and can be attributed to a increase in transport costs, particularly air fares which rose by 29% from March to April. Rising alcohol and tobacco costs also contributed. The new figures will increase pressure on the Bank ...

Inflation rises sharply

The Office of National Statistics (ONS) has announced that inflation rose significantly last month. The Consumer Prices Index (CPI) rose to 4.4% in February, up by 0.4% since January. The Retail Prices Index (RPI) which includes the cost of mortgages, rose from 5.1% in January to 5.5% in February; its highest level for 20 years. The Bank of England’s Monetary Policy Committee (MPC) has a target for CPI of 2% - this is the 15 month in a row that this target has not been met, and the current level of CPI is the highest it has been since October 2008.

Inflation expected to rise says poll

Two in three people believe the rate of inflation will rise further. Few workers will ask for higher pay to combat meeting the costs of rising inflation. Almost two third of Britons think the rate of inflation will rise over the next year, according to a Bank of England survey. The study, carried out last month, highlighted that 62% of participants expect a rate rise, marking a 10% increase from figures recorded in November. It also showed that less than 10% of respondents said they would ask for higher wages to meet the cost of rising prices.

Inflation rises on the back of VAT increases

The Consumer Price Index (CPI) rose last month to 4.1% from 3.7% in December.  The Retail Price Index (RPI), which includes mortgage interest payments, also rose, from 4.8% to 5.1%. CPI is now double the Bank of England’s target of 2% and at its highest level since November 2008; it will lead for further calls for a rise in interest rates. This rise has been blamed on higher fuel prices and the recent rise in VAT. Following the inflation figures announced today Mervyn King, the Govenor of the Bank of England has been forced to ...