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| UK inflation up to 4.7% in August | UK inflation up to 4.7% in August |
| (20 minutes later) | |
| The UK's annual rate of inflation has risen to 4.7% in August, its highest level since records began in 1997. | The UK's annual rate of inflation has risen to 4.7% in August, its highest level since records began in 1997. |
| Bank of England Governor Mervyn King will now have to write a letter to the chancellor explaining why inflation is higher than the government's 2% target. | Bank of England Governor Mervyn King will now have to write a letter to the chancellor explaining why inflation is higher than the government's 2% target. |
| Higher energy and food bills sent the Consumer Price Index (CPI) higher, the Office for National Statistics said. | Higher energy and food bills sent the Consumer Price Index (CPI) higher, the Office for National Statistics said. |
| Inflation as measured by the Retail Prices Index (RPI) - often used in pay negotiations - fell to 4.8% from 5%. | Inflation as measured by the Retail Prices Index (RPI) - often used in pay negotiations - fell to 4.8% from 5%. |
| The Bank of England's Monetary Policy Committee has not been able to consider a cut in interest rates to boost the flagging UK economy while inflation keeps rising. | |
| But with the sharp fall in oil prices over the past month from their high of close to $150 a barrel, some analysts are optimistic that inflation could be near its peak. | |
| "This latest inflation figure, coupled with the recent moves in energy prices, could be an indication of inflation nearing its peak," said Richard Hunter, an analyst at stockbrokers Hargreaves Lansdown. | |
| He added: "This in turn could lead to a loosening of monetary policy by way of an interest rate cut in the UK, at a time when the markets are eagerly seeking signs of recovery." |