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 tight...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
