Economics / Markets

The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.

Official inflation figures due out today are misleading the public, according to international experts who say the data understates the true increase in the cost of living.

China has eclipsed Japan as the world's second-biggest economy after posting GDP figures of $5.8trn for 2010, higher than Japan's $5.47trn.

The City sees a one-in-five chance the Bank of England will raise interest rates today to combat rising inflation.

Inflation will stay "stubbornly high" this year, pressuring the Bank of England to up interest rates from the second quarter, the Confederation of British Industry (CBI) says.

China has raised interest rates for the third time in four months in an attempt to cool inflation.

The government says it will increase the levy on bank profits to £2.5bn this year, to raise an extra £800m for the public purse.

London's leading share index added 0.75% in late morning trading on Monday as miners were buoyed by strong results from Randgold Resources.

David Cameron has ruled out significant tax cuts while the government is cutting spending to reduce the deficit.

There is a "real chance" the Bank of England will raise interest rates as early as next week, says Skandia, with subsequent hikes pushing rates up to 3% by the end of next year.