Bank of England Pressed to Rein in Inflation

Food, energy prices soar, push inflation to highest rate in 16 years

By Jim O'Neill, Newser User

Posted Aug 13, 2008 10:26 AM CDT

(Newser) – Great Britain’s inflation rate—driven by energy and food prices rising at the fastest pace in more than 20 years—is on track to hit 5% by autumn, reports the Guardian. The cost of living jumped 0.6% to a 16-year high of 4.4% last month, the largest 1-month jump under the Labor government, boosting pressure on the Bank of England to raise interest rates.

If it does so, the Bank of England would be attempting to bring inflation back to the 2% goal for the year. Food prices have risen some 14% in the past year. Said a Treasury official: "I think everybody recognizes that it is not possible for governments to fully insulate, whether it is households or businesses, from these kinds of world oil prices that we have seen."

Bank of England Governor Mervyn King gives evidence at the Commons Treasury Committee in House of Commons, London, Tuesday July 22. (AP Photo)

The Bank of England is seen in London. (AP Photo/Kirsty Wigglesworth)

Britain's Prime Minister Gordon Brown. (AP Photo/Kirsty Wigglesworth,pool)

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Bank of England Pressed to Rein in Inflation

Food, energy prices soar, push inflation to highest rate in 16 years

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Thanks for Nothing: Pecan Prices Up 22%

Blame China, droughts for soaring cost of Thanksgiving staple

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Chains, retailers struggling with how much consumers can take

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Bank of England Pressed to Rein in Inflation

Food, energy prices soar, push inflation to highest rate in 16 years

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OTHER STORIES ON OUR RADAR

inflation • core inflation • credit crisis • food prices • Bank of England

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Thanks for Nothing: Pecan Prices Up 22%

Blame China, droughts for soaring cost of Thanksgiving staple

Davos Brimming With Optimism for 'New Reality'

But rising food prices, political uncertainty are cause for concern

Glenn Beck's Advice: Sell Your Stuff!

Prices are rising, and you should be prepared, he warns

Inflation Begins Creeping Into Food Prices

Chains, retailers struggling with how much consumers can take

Credit Crisis 'Froze' Inflation: Dallas Fed Chief

Nevertheless, US is 'navigating the mother of all financial storms'

About Us

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Newser By Users

Community

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What is Newser?