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| Source: Dominic Burke | Getty Images |
British consumer price inflation surged to double the Bank of England‘s target in January, official data showed on Tuesday, raising pressure on the central bank to look seriously at increasing interest rates.
The Office for National Statistics said that the rate of consumer price inflation rose to 4.0 percent in January, in line with economists’ forecasts, from 3.7 percent in December.
The rise, which was driven by higher oil prices and increased indirect taxation, means inflation has been at least a percentage point above the BoE’s 2 percent target for more than a year.
BoE Governor Mervyn King will have to publish a letter to finance minister George Osborne later on Tuesday explaining why inflation remains so high.
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