Inflation

Eurozone inflation has declined to 2.6%, down slightly from 2.7% in March, but still well above the ECB's 2% target.

Monetary Policy Committee(MPC) member Adam Posen has revealed his reasons for abandoning his call for further stimulus to boost the UK economy, following the publication of this month's minutes.

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.

The UK Consumer Prices Index (CPI) climbed in March as higher food and clothing prices pushed inflation up to 3.5%.

BUDGET

CPI annual inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics.

Chinese inflation has fallen to a 20-month low, giving further room for policymakers to stimulate the economy.

M&G bond manager Mike Riddell and his team have taken exposure to global index-linked bonds to their highest ever levels in the view inflation risks have not been priced into the market.

The Bank of England has raised its inflation forecast for two years' time to around 1.8%, more than some economists had predicted.

CPI inflation dropped from 4.2% to 3.6% In January, according to the Office for National Statistics, as 2011's VAT rise comes out of the year-on-year numbers.