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.

European Central Bank president Jean-Claude Trichet has hinted the ECB may be forced to raise interest rates as early as next month to curb significant recent inflation increases.

House prices fell 2.4% in May, according to the Halifax, providing further evidence that the UK housing boom is over.

The Federal Reserve has signalled its intent to shift its focus to fight the increasing dangers of inflation and the low US dollar.

Pensioners with fixed rate annuities risk losing around a fifth of their purchasing power over the next five years due to rising inflation, according to Aon Consulting.

Any hopes of further US interest rate cuts have been dampened after the Federal Reserve admitted to heightened concerns surrounding rising inflation.

UK inflation, on an annualised CPI basis, could hit a staggering 7% if it continues to run at the current rate, Rathbone Unit Trust Management CIO Julian Chillingworth believes.