Inflation To Reach 5%

According to the governor of the Bank of England Mervyn King, inflation will reach 5% later this year because of utility costs.

The Bank Of England were publishing their inlfation report when Mr King made the annnouncment about the inflation rise.

Mr King reiterated that the UK was facing “a difficult time ahead” and a “slow and prolonged adjustment to the consequences of the financial crisis”.

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