Inflation

The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England governor Mervyn King to write to new Chancellor George Osborne to explain why.

Bank of England's latest Inflation Report predicts inflation will remain above 2% target throughout 2010 but should fall below in longer term

Inflation is set to fall below its 2% target - even if interest rates remain at their record low, the Bank of England said in its quarterly inflation report.

The Bank of England (BoE) today kept interest rates at a record low of 0.5% as uncertainty remains over who will govern Britain.

As Britain wakes up this morning to a likely hung parliament, Investment Week examines the key issues threatening a cross-party coalition.

Warren Buffett has outlined concerns about significant global inflation, while the legendary investor also believes the Greek debt crisis has the potential for "high drama".

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to hold fire on any changes to interest rates this month, but some members are growing increasingly concerned about inflation.

The Bank of England's fantasy forecast of a decline in annual CPI inflation to about 1% in early 2011 looks even less credible in the wake of March numbers showing an unexpectedly large rise from 3% to 3.4%.

Inflation rose to a higher-than-expected 3.4% in March, according to the Office for National Statistics.

Inflation fell back to 3% in February after a sharp spike at the beginning of the year.