New Star representative warns of impending inflation rise

Potentially reinforcing the need to secure a qualified adviser for tax advice, the UK's current rate of inflation could go beyond three per cent as early as next week, it has been claimed.

Although the Bank of England's inflation target is currently set at a rate of two per cent, Simon Ward, a representative from New Star, believes that the Bank's governor may be required to write an open letter to the chancellor as early as next week.

Current data from the Bank of England shows that inflation is currently at three per cent and any rises above that level would trigger the writing of the letter.

"A 3.1 per cent CPI reading is not a done deal - 'core' inflation jumped sharply in April and may partially retrace the increase in May," said Mr Ward.

"It would be surprising if the decline were sufficient to offset the above upward effects, however."

Inflation data will next be announced by the Bank of England on June 17th.