October’s Consumer Price Index (CPI) remained well above the target rate of 2 percent in October to an annualized rate of 3.2 percent. In his letter to the Chancellor explaining why inflation remains so much above target, Bank of England Governor Mervyn King identified an increase in commodity prices, taxes and fuel costs as being responsible.
King also suggested that inflation will remain elevated and could even rise in the coming months.
“CPI inflation is expected to remain above target, and at a somewhat higher level than expected three months ago, for a period of a year or so,” the Bank governor added. “Indeed, over the next few months the inflation rate might rise further.”
Source: BBC News