Inflation

No one should fool themselves into believing that Britain can inflate its way out of its public debt mountain, the Bank of England's deputy governor has warned.

Annual inflation in the Organisation for Economic Co-operation and Development (OECD) area remained stable in April at 2.1%, although food and fuel prices rose.

Bank of England governor Mervyn King yesterday set out his reasons for the overshoot of CPI inflation last month in a letter to new Chancellor George Osborne. They were all dubious, says Henderson chief economist Simon Ward.

The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England Governor Mervyn King to write to new Chancellor George Osborne to explain why.

Inflation is set to fall below its 2% target - even if interest rates remain at their record low, the Bank of England says in its Quarterly Inflation Report.

The Bank of England (BoE) today kept interest rates at a record low of 0.5% as uncertainty remains over who will govern Britain.

As Britain wakes up this morning to a likely hung parliament, IFAonline examines the key issues threatening a cross-party coalition.

Household finances deteriorated at the fastest pace for four months in April, data from Markit/YouGov suggests.

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to hold fire on any changes to interest rates this month, but some members are growing increasingly concerned about inflation.