Inflation Hits 4.5%

Inflation has reached its highest level in two and a half years: The current level is higher than expected. The rising cost of living has driven inflation to its current level. As petrol prices rise, duty is hiked up and air fares increase you have get less bang for your buck.

Current inflation levels are a problem for The Bank of England and deciding how to deal with the problem has divided the Monetary Policy Committee. Interest rates are being kept low in an attempt to incubate a slow growing economy.

Now people who have savings will worry that they will start losing cash as inflation overtakes interest rates. Those in debt will be worrying as inflation increases. Wages are not rising to meet inflation. Pressure is on The Bank of England Monetary Policy Committee to raise interest rates to curb inflation.

For now people can do little but sit and wait for things to change.

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