The UK inflation rate rose to 3.5% in January (the fastest annual pace for 14 months) from 2.9% the month before, official figures have shown.
Consumer Prices Index (CPI) inflation was driven up by VAT returning to 17.5% and higher petrol prices. The Retail Prices Index (RPI) inflation which includes housing costs, rose to 3.7% in January, up from 2.4%.
Bank of England governor Mervyn King has had to write a letter of explanation to the chancellor.
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