Inflation

Bank of England inflation hawk Andrew Sentance believes policymakers should start gradually raising interest rates on improving economic conditions.

UK inflation dropped for a second consecutive month to 3.2% in June, driven by falling petrol and clothing prices, according to the Office for National Statistics.

Legal & General is offering indexation on life insurance, critical illness and income protection products on a ‘pay as you go' basis, and giving advisers an up-lift in commission of 10% LIC for introducing business with an indexation option.

The consumer price index (CPI) of inflation eased in May to 3.4%, down from 3.7% in April, according to the Office for National Statistics (ONS).

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.