UK inflation levels expected to rise

Inflation levels in the UK are expected to rise beyond three per cent.

With the Bank of England scheduled to release updated figures later on today, inflation is expected to sufficiently push past its two per cent target to warrant the writing of an open letter to the chancellor.

Among some experts, it is thought that the consumer price index inflation measure could have increased to 3.2 per cent last month.

"Having leapt unexpectedly in April, there is a serious chance that consumer price inflation will move higher in May," said Vicky Redwood, an analyst at Capital Economics.

"This would almost certainly be the first of several letters, as consumer price inflation looks well set to reach four per cent this summer before starting to fall back late in the year," said Howard Archer, an economist at Global Insight.

Inflation figures are believed to have been affected by falls in the country's growth levels, in addition to rising prices for food and oil.

In related news, inflation in the eurozone last month reached a total of 3.7 per cent.