This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6562723.stm
The article has changed 14 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK inflation hits 3.1% in March | UK inflation hits 3.1% in March |
| (10 minutes later) | |
| The Bank of England governor will have to write a letter of explanation to the government after UK consumer price inflation rose to 3.1% in March. | The Bank of England governor will have to write a letter of explanation to the government after UK consumer price inflation rose to 3.1% in March. |
| The Consumer Prices Index (CPI) is now more than one percentage point above the government's 2% target. | The Consumer Prices Index (CPI) is now more than one percentage point above the government's 2% target. |
| Figures from the Office for National Statistics (ONS) also show that a wider inflation measure, RPI, rose to 4.8% in March, up from 4.6% the month before. | |
| The figures could trigger a further rise in UK interest rates. | The figures could trigger a further rise in UK interest rates. |
| Pound Sterling soared on currency markets as a result, briefly passing through the $2 level. | Pound Sterling soared on currency markets as a result, briefly passing through the $2 level. |
| Rate rise | |
| The Bank of England has raised UK rates three time since August last year in an attempt to contain inflationary pressures. | The Bank of England has raised UK rates three time since August last year in an attempt to contain inflationary pressures. |
| At its last rate-setting meeting earlier this month it kept rates at 5.25%, but following the latest inflation figures analysts now expect the Bank to lift rates in May to 5.5%, and possibly beyond. | |
| "The argument for a rate hike is a done deal," said Adrian Hughes, currency strategist at Societe Generale. "We can't rule out rates going higher (beyond May)." | |
| The ONS said CPI inflation jumped 0.5% in the month, with rising milk, petrol and furniture prices behind the increase. | The ONS said CPI inflation jumped 0.5% in the month, with rising milk, petrol and furniture prices behind the increase. |
| The rise lifted the annual rate of CPI inflation to 3.1% - the highest since the series began in January 1997 - from February's rate of 2.8%. | The rise lifted the annual rate of CPI inflation to 3.1% - the highest since the series began in January 1997 - from February's rate of 2.8%. |
| The letter from the Bank of England explaining the increase will be the first such written since the government handed control of monetary policy to the Bank in 1997. | The letter from the Bank of England explaining the increase will be the first such written since the government handed control of monetary policy to the Bank in 1997. |
| The letter is set to be published at 1030 UK local time (0930 GMT) and the Treasury is expected to respond at the same time. |