Inflation rises to 4.4%
Inflation increased to 4.4% in February, up from 4% in January, the highest figure since 2008, according to figures from the Office of National Statistics.
The latest increase will mean that the Governor of the Bank of England will have to write to the Chancellor once again, explaining why inflation has missed its target of 2%.
Other countries are using different measures to control inflation. Last week The People's Bank of China said that it would raise the reserve requirement ratio by half a percentage point. This forces most of the large institutions to hold a record 20 per cent of their deposits at the central bank. Experts say that the increase would lock up as much as $56 billion in funds that the banks would have previously been able to lend.
Inflation in China is a key issue and the central bank has now raised the reserve requirements for banks nine times since the start of last year. It has also lifted the benchmark deposit and lending interest rates three times since October.
March 28, 2011
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