BoE deputy warns inflation will be higher than expected

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Paul Tucker,deputy governor of the Bank of England, has warned inflation will be higher than expected this year, following yesterday's unexpected rise in CPI.

Tucker, one of the favourites to replace Mervyn King as BoE governor next year, said inflation might stay above 3% this year, according to the BBC. The Bank's previous forecast was for the inflation rate to fall to the official 2% target by the end of 2012. Mr Tucker said he based his prediction on higher energy prices and tax increases in the Budget. It comes after yesterday's official figures from the Office for National Statistics showed a rise in the rate of inflation from 3.4% to 3.5% in March. Tucker, speaking to a conference of corporate treasurers in Liverpool, described...

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