Inflation is expected to hit the highest since the Bank of England was granted independence more than 10 years ago, underlining the financial squeeze endured by British families, The Telegraph reports.
Economists expect that figures released today will show that the Government's main inflation measure rose to 3.2% last month, as sharp increases in food and fuel prices continue to feed through. Should the forecast prove correct, Governor Mervyn King will have to write to the Chancellor Alistair Darling explaining why inflation has strayed more than one percentage point above its 2% target. The letter would be only the second one the Bank's Monetary Policy Committee has been forced to write and will be an embarrassment for both the Chancellor and the Governor. THE CREDIT CRUNCH tightene...
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