We Know Property

February 17, 2010

UK Inflation accelerates to 3.5%

Category: UK Economy – propropertyinvestor – 5:30 am

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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