Inflation Rise

Published / Last Updated on 10/02/2010

Inflation Rise Expected

The Governor of the Bank of England, Mervyn King said he expects inflation to rise above 3% for January but then expects to see it fall back over the remainder of 2010, although by how much he is not sure.

Mr King said that all economic indicators lead him to believe recovery for the UK will be slower than initially predicted and there could still be a need for more money to be injected into the economy. He said he will take action to keep inflation low.

King said it was difficult to make further predictions on the wider economy because it is not clear how the general public and UK businesses will react to fiscal tightening, tax rises or spending cuts.

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