Inflation hits 5.1% and rising

INFLATION has hit a three-year high of 5.1% and is running at more than twice the EU average.

Government hikes in VAT and excise duties have added 2% to the overall inflation rate and with electricity prices set to rise economists have warned the cost of living will jump to 5.5% later this year.

The Consumer Price Index rose by 1% in February, the highest monthly increase in three years.