10:21 am, Wed 13 Feb 2013
Inflation driven by energy bills, tuition fees and food
Inflation figures out yesterday remained unchanged at 2.7% despite a strong performance from high street retailers, economists said.
energy bills and tuition fees are behind the high rate, as well as air fares and a recovery in alcohol and food prices.
Figures from the British Retail Consortium suggest the high street performed far better than expected, driven by heavily discounted clothes and shoe prices over the Christmas period.
Howard Archer, chief UK and European economist at IHS Global Insight, said that the weak pound was also a factor.
10:02 am, Wed 13 Feb 2013
Bank of England expected to lower growth forecast
The Bank of England is expected to downgrade its growth forecasts today and warn of more financial pain for households after figures confirmed inflation remained above target last month.
A bus is seen outside the Bank of England in central London
Credit: Lewis Whyld/PA Wire
Economists predict central bank boss Sir Mervyn King will paint a grim picture of rising inflation and low economic growth when the latest quarterly forecast is released.
The Bank's Monetary Policy Committee has warned that inflation Is likely rise in the coming months and might remain above the 2% target for another two years.
The outlook for the British economy in 2013 has already been downgraded in November's report to around 1%, but could be downgraded again.
9:37 am, Tue 12 Feb 2013
Underlying rate of retail price index inflation rises
The underlying rate of retail price index inflation rose to 3.3 percent in January from three percent in December, the Office for National Statistics announced today.
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9:34 am, Tue 12 Feb 2013
Consumer price index inflation unchanged at 2.7%
The rate of consumer price index inflation remained unchanged in January at 2.7 percent, official figures released today showed.
However, the headline rate of retail price index inflation rose to 3.3 percent in January from 3.1 percent in December, the Office for National Statistics said.