Inflation

BEATING INFLATION

Inflation hit 4.4% in February, up from 4% in January, according to the Office for National Statistics (ONS) - heaping more pressure on the Bank of England to hike interest rates.

UK annual inflation is set to hit 4.2% for February, more than double the Bank of England's target, forecast economists in an IFS report.

The Reserve Bank of India has raised interest rates to fight rising consumer prices in the country.

The UK will be at risk of returning to recession if the Bank of England raises interest rates, says MAM Funds' Martin Gray.

Holding UK interest rates at crisis levels is "inappropriate" as rising inflation becomes a bigger concern than a double dip recession, says Julie Dean at Cazenove.

The Monetary Policy Committee's forecasts for UK real growth are too optimistic, while concern mounts over its inaction in raising rates to stem rising inflation, says Threadneedle's Mark Burgess.

Several fund managers have warned the Bank of England is underestimating inflation in the UK, and they expect it to be higher for longer than predicted.

Investors' growing appetite for emerging market debt is a cause for concern as the asset class could be set for a correction, says Rathbones' David Coombs.

Cazenove's Marcus Brookes may start buying government bonds "pretty aggressively" if too much inflation is priced in.