Inflation rises as feared from 3.3% to 3.7% in December

The feared rise in inflation became a reality when the Consumer Price Index (CPI) increased from 3.3% to 3.7% in December. The Bank of England are coming under increasing pressure to raise interest rates to try and cut back on spending and reduce demand. The increase is blamed on rising costs of air transport, fuel, food and utility bills, and the recent VAT increase from 17.5% to 20% is likely to cause further rises.

1. Click here for full story
2. Who is most affected by inflation?
3. Stephanie Flanders - Inflation: Risks on both sides

Other stories

OPEC, the oil producing group, has said it is unlikely to increase output of oil despite the price of crude oil nearing $100 a barrel. A spokesman claims that supply to the market is sufficient and any output to reduce the price now looks unlikely.

1. Full story