August inflation rises to 4.7 per cent
Wednesday, September 17th, 2008
The spike in inflation was higher from July to August; 4.4 per cent to 4.7 per cent and the Bank of England say things will get worse before there is any sign of a fall.
Mervyn King the Bank of England governor is blaming high food and energy prices for the increases in inflation over the last 12 months.
The office for National Statistics said that rising energy prices were compounded last month as most of the big energy companies increased their prices. Believe it or not they’re even blaming the rising cost of pizzas and fruit for the increase in inflation figures!
Mr King must write to the Chancellor and explain why inflation is above the government’s 2 per cent target and he says that ‘the expected peak in inflation later this year us now likely to be significantly higher than anticipated.’ Also, rather unfortunately for most of us, that inflation is likely to remain above the 2 per cent target well into 2009…