RPI

TAX

Economists are broadly positive on the plans announced in the emergency Budget and are scrambling to revise their own growth forecasts in light of the austerity measures.

The consumer price index (CPI) of inflation eased in May to 3.4%, down from 3.7% in April, according to the Office for National Statistics (ONS).

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.

ASSET ALLOCATION

Inflation figures released last week by the Office for National Statistics show a higher-than-expected jump, while the Bank of England's Monetary Policy Committee (MPC) has revealed its members are increasingly worried about the rise.

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

UK inflation has hit 3.5%, prompting Mervyn King to write a letter of explanation to the Chancellor.

UK inflation rose at the fastest annual pace for three quarters in December, according to the Office of National Statistics.