Data shows rise in inflationary pressures

Date: 13th May 2008

Inflationary pressures are increasing to a level not seen for almost two decades, it has been claimed.

According to reports by the Financial Times (FT), in addition to the increase in inflationary pressures, the publication believes that data to be released today (May 13th) will highlight areas of the UK economy where stagnation is now taking place.

Although the Bank of England is expected to provide fresh inflationary data later today, the latest figures currently show the UK's inflation to be at a rate of 2.5 per cent.

The Bank of England will publish its next report on inflation on May 14th.

"It now looks almost certain that Mervyn King, the Bank of England governor, will have to write his second letter to the chancellor in 18 months to explain why inflation has moved more than one [per cent] above the two per cent target," said Chris Giles and Ed Crooks in a report by the FT.