Inflation

Mervyn King, governor of the Bank of England, has told MPs he is confident inflation will fall back to its 2% target.

The Federal Reserve has voted nine to one to hold key US interest rates at 2%.

Pensioner inflation could erode entire monthly income within two decades of retirement, according to Standard Life.

A surprise boom in retail spending in May might prompt the Bank of England to raise interest rates earlier than expected.

Rocketing petrol and food prices have caused around 43% of Britons to save less for their retirement, according to a survey by financial services company Edward Jones.

The Government's official measure of inflation hit 3.3% in May, well above the 2% target set by the Treasury.

Inflation is expected to hit the highest since the Bank of England was granted independence more than 10 years ago, underlining the financial squeeze endured by British families, The Telegraph reports.

Eurozone inflation has climbed to a record level as food and fuel costs continue to soar.

Inflation has risen sharply in the US due to rising fuel costs, and may prompt the Federal Reserve to raise interest rates.

The Bank of England may raise interest rates next month as a survey showed a lack of public confidence in its ability to control inflation.