1. Richard Edgar

Sir Mervyn King denies higher inflation is 'okay'

Several strong themes emerge from the Bank of England's quarterly report.

Inflation is strengthening, but this has nothing to do with tuition fees or regulated energy prices.

When I asked Sir Mervyn King whether he is saying that higher inflation is okay, he said 'no' but added that it was better than taking it lower and risking killing off a recovery.