Inflation

US inflation rose to a two-and-a-half year high, as rising food prices took their toll.

Mervyn King has claimed low capital requirements and inadequate limits on leverage have been the most "tragic" aspects of financial regulation.

May's UK inflation reading remained unchanged from April, official figures have shown, giving Bank of England governor Sir Mervyn King some respite.

Julian Chillingworth, chief investment officer at Rathbone Unit Trust Management, advises focusing on the old enemy – I.N.F.L.A.T.I.O.N.

Andrew Sentance, who yesterday stepped down as a member of the Bank of England (BoE) monetary policy committee (MPC), has condemned the Bank's refusal to raise interest rates.

Eurozone inflation fell to a lower-than-expected 2.7% in May.

Savers were dealt a fresh blow recently following the unexpected news UK inflation had hit a 30 month high in April, rising from 4% to 4.5%.

WHY EQUITIES ARE NOT A GOOD HEDGE

The Bank of England's Monetary Policy Committee (MPC) has remained split three ways on interest rates, minutes of its latest meeting show.

Inflation rose to its highest level since September 2008 last month, reversing the previous month's retreat and breaking sterling's five-day decline against the dollar.