18-03-2008
Inflation levels hit new high
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
UK inflation levels have reached a new high.
According to recently released data by the Office for National Statistics (ONS), inflation levels under the Consumer Prices Index (CPI) have reached 2.5 per cent, a level not seen for nine months.
Last month's rise contrasts with inflation figures of 2.2 per cent in January 2008.
"In order to maintain price stability, the government has set the Bank's monetary policy
committee (MPC) a target for the annual inflation rate of the [CPI] of two per cent," said the Bank of England in its February inflation report.
"Subject to that, the MPC is also required to support the government's objective of maintaining high and stable growth and employment."
However, the increase in inflation has been explained by a modification in the methodology used during the calculation process.
The ONS figures also showed that inflation levels as measured by the Retail Prices Index remained static last month at 4.1 per cent.