Inflation hits 10 year high

Higher oil prices, food and furniture all contributed to the pick up in costs. The consumer price index has now moved beyond its target level for the first time since the Monetary Policy Committee was formed to reach a peak since comparable records began in 1997. Barry Naisbitt, chief economist for Abbey, said: “Certainly, financial markets have now firmed up their view of another base rate rise next month. "The Bank of England's inflation report next month will be critical in informing markets of the extent to which the Bank still expects inflation to fall in the second half of this ...