|
 Homeowners received another blow yesterday (June 17th) as the governor of the Bank of England warned that inflation is likely to rise above four per cent this year.
Mervyn King revealed that the consumers price index hit 3.3 per cent in May, a rise of 0.3 per cent from April, pushing it to its highest level since 1992.
And in his explanatory letter to the chancellor, Mr King admitted that the added pressures of rising global food, fuel and energy prices are likely to force the figure even higher.
One section reads: "In the past month, oil prices have risen by about 15 per cent and wholesale gas futures prices for the coming winter have increased by a similar amount.
"As things stand, inflation is likely to raise sharply in the second half of the year, to above four per cent.
"I must stress that there are considerable uncertainties, in both directions, around this."
The government's target currently stands at two per cent, but the laws state that Mr King is automatically required to write an explanatory letter whenever that figure is surpassed by more than one percentage point.
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
