CPI rises to 3.3pc

The Consumer Prices Index (CPI) measure rose to 3.3pc, up from 3pc the previous month, while the annual rate of increase in the Retail Prices Index was 4.3pc, 0.1 percentage points up on a month earlier. The breaching of the 3pc CPI level means that the governor of the Bank of England must write an explanatory letter to the chancellor. Rising food and energy prices were responsible for much of the upwards pressure on inflation during the month and analysts said CPI could rise further this year, to reach 4pc. Rising inflation as the economy slows makes the Bank of England's rate-settin...