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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Household squeeze 'to worsen'

The Bank of England governor made clear today that the squeeze on household budgets will only get worse. Sir Mervyn King said he expected inflation to rise to three percent or more by the Ssummer and stay above target for another two years.