Nov inflation rate highest in six months

The consumer prices index (CPI) rose to an annual rate of 1.9%, the highest since May and significantly higher than October's 1.5%. Inflation is forecast to rise further next year when VAT reverts to 17.5%. Meanwhile, the retail prices index (RPI) rose to 0.3% from a rate of -0.8% in October, representing the first time the RPI index has been positive since January. The Bank of England (BoE) has a CPI target of 2%. If CPI inflation rises above 3%, BoE governor Mervyn King must write to the Chancellor to explain why. "By far the largest upward pressure affecting the change in the C...