Inflation exceeding targets

Wednesday, September 14, 2005

Inflation is rising at a rate greater than the Bank of England's (BoE's) target, latest research reflects.

According to figures from the Centre of Economic Business Research (cebr), inflation is outstripping the BoE's consumer price index (CPI), rising by 2.4 per cent in August, year-on-year.

Inflation was also up by 2.3 per cent in July, and has thus exceeded the government's two per cent target for two consecutive months.

High and rising petrol prices, which have been forced up by the cost of crude oil, have been highlighted as key factors driving this trend.

However retail price inflation (RPI) fell by 0.1 per cent in August to 2.8 per cent, year-on-year.

Inflation is currently at its highest level since the BoE starting set inflation targets, in 1997.