The official rate of annual inflation on the Consumer Prices Index rose to 3.5pc last month from 3.4pc in February according to Office for National Statistics data.
It was the first rise in six months after inflation peaked at 5.2pc in September 2011. Economists had forecast no change from 3.4pc.
The Bank of England and Government had been hoping that inflation would keep falling this year, easing the financial burden on British households and businesses.
The Bank has repeatedly insisted that inflation would fall sharply in the early part of this year and be below the 2pc target by the end of the year.
Sir Mervyn King, the Bank’s governor, is now likely to have to write yet another letter to the Chancellor in May, explaining why inflation is more than one percentage point above the target.
The March rise will be an embarrassment to the Bank’s Monetary Policy Committee, which is expected to actively consider boosting its £325bn quantitative easing programme at its May policy meeting.
Stubbornly high inflation make further bond purchases through QE less likely, given the programme's potential to further fuel inflation.
Source: UK inflation posts unexpected rise in March - Telegraph
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It was the first rise in six months after inflation peaked at 5.2pc in September 2011. Economists had forecast no change from 3.4pc.
The Bank of England and Government had been hoping that inflation would keep falling this year, easing the financial burden on British households and businesses.
The Bank has repeatedly insisted that inflation would fall sharply in the early part of this year and be below the 2pc target by the end of the year.
Sir Mervyn King, the Bank’s governor, is now likely to have to write yet another letter to the Chancellor in May, explaining why inflation is more than one percentage point above the target.
The March rise will be an embarrassment to the Bank’s Monetary Policy Committee, which is expected to actively consider boosting its £325bn quantitative easing programme at its May policy meeting.
Stubbornly high inflation make further bond purchases through QE less likely, given the programme's potential to further fuel inflation.
Source: UK inflation posts unexpected rise in March - Telegraph
Blame this man -
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