Britain’s inflation goes up as food and fuel prices rise

June 17th, 2008 - 10:15 pm ICT by IANS  

DPA
London, June 17 (DPA) Rising fuel and food prices pushed inflation in Britain above 3 percent in May, to its highest level since the current inflation measure was introduced more than a decade ago, the Office for National Statistics (ONS) said Tuesday. Figures showed that the Consumer Price Index (CPI), by which inflation is measured in Britain, rose by 0.3 percentage points to 3.3 percent in May, from 3 percent in the previous month.

However, if measured by the Retail Price Index (RPI), which includes mortgage interest rate payments, inflation in Britain stood at 4.3 percent in May.

The ONS said this was the highest reading since the measure was first used in January 1997. Previous comparable annual inflation readings were last as high in July 1992.

The figures show that the cost of living in Britain has now risen by more than 1 percent above the government’s 2-percent upper target, triggering a public explanation from the Bank of England, and making a cut in interest rates in the near future unlikely.
DPA

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