Inflation in the UK rose from 4.2% to 4.4% yesterday, reported the Office of National Statistics (ONS), a figure still well above the Bank of England’s target of 2%.
High inflation is continuing amidst the decreased confidence in the global economy all around the world.
With the risk of a double-dip recession still very real, chancellor George Osborne has called for a united front in dealing the global economic problems, with positive solid policies implemented worldwide.
He also called for countries with large deficits to implement credible cuts to help rebalance the economy.
Food and non-alcoholic drink prices however were said to have decreased pressure on inflation, as the Bank of England continues to attempt to lower inflation closer to its target.
But with VAT at 20%, it remains to be seen whether inflation will come down before the end of 2011.