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Inflation Rises to 4 point 5 Percent Its Highest Level For 2 and a Half Years
08/06/2011
Duty rises in the Budget, rising air fares and petrol prices have driven inflation to its highest level in two-and-a-half years.
The Office for National Statistics says the financial pressure on households continued as the consumer prices index (CPI) rate of inflation increased to a higher than expected 4.5% in April from 4% in March.
Inflation has been 4% or more, double the official target, every month this year, and the Bank of England has forecast that it might rise to 5% before falling back. The April rate was the highest since September 2008 when it hit 5.2%.
Bank of England Governor Mervyn King said in a letter he is obliged to write to the Treasury when inflation is more than 1 point above or below target. 'Continuing volatility in energy and commodity prices makes it difficult to be sure when inflation will return to the target. Inflation is likely to rise further over the next few months, as increases in the price of energy are likely to raise petrol prices and make it more likely that there will be substantial increases in utility bills later in the year.
'Homeowners aged over 55 years who are worried about rising inflation and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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