UK inflation surges on food and fuel prices
5/13/2008 - 9:39:01 AMThe cost of living in the UK unexpectedly surged at its fastest rate for almost six years during April, official figures showed today.
The 0.5% rise in the Consumer Prices Index (CPI) to 3% is the biggest monthly jump since July 2002 and follows surging gas and electricity bills, food prices, and budget tax hikes on alcohol and tobacco.
The gloomy figure - far higher than the 2.6% expected by City economists - brings the Bank of England’s Governor Mervyn King to the brink of writing a second open letter to the UK's Chancellor to explain the rise in inflation.