Inflation

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.

Bank of England Governor Mervyn King may be forced to write a letter to the Chancellor on the high inflation level as early as next week, New Star chief economist Simon Ward predicts.

Global growth is set to fall 1% this year as developing nations feel the pinch of rising inflation, a new World Bank study reveals.

Investors have bet the Bank of England will have to raise interest rates as many as three times before the end of the year, The Telegraph reports.

Fears the US economy has entered a substantial downturn have eased over recent months, Federal Reserve chairman Ben Bernanke claims.