Inflation

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

UK CPI inflation stood at 2.7% for the fourth consecutive month in January, but fears over longer-term forecasts sent sterling to a six month low in early trading.

The Bank of England's Monetary Policy Committee (MPC) has said inflation may remain above the 2% target for the next two years, in part due to sterling weakness.

FIVE THINGS

The outgoing governor of the Bank of England (BoE), Mervyn King, has said it may be time to review the UK's inflation target, but rejected a suggestion by his successor that central bankers should abandon inflation targeting altogether in times of economic...

INFLATION

The UK's main inflation rate has remained at 2.7% for the third month in a row, broadly in line with economists' expectations, despite steep rises in energy bills.

Annuity experts have welcomed the Office of National Statistics' (ONS) surprise decision to keep the current measure of inflation.

SOAPBOX

The Chancellor is on a collision course with bond markets over plans to change how inflation is calculated. The switch could bring the exchequer a £3.8bn windfall from a reduction in interest payments.