Bank of England issues 5% inflation warning

Inflation in the UK is at significant risk of pushing past 5% in the coming months, policymakers at the Bank of England warned today as surging oil prices triggered by violence in North Africa add pressure to the cost of living in the country.

March minutes of the Bank’s Monetary Policy Committee (MPC) meeting showed members voted six to three in favour of holding rates at their historic low of 0.5% – but said the case for a hike had strengthened.