London, United Kingdom, January 22, 2010 --(PR.com
)-- Increases in the Consumer Price Index have been a strong signal that this strategy has run its course. Annual CPI jumped from 1.85 per cent in November to 2.94 per cent last month - the largest increase in the annual rate since and well above analyst estimates of 2.55 per cent. Concern over growing unemployment, however, will keep the Bank of England’s economists alert through the year.
The shift in the CP index was mostly driven by reductions in energy prices as well as cuts to the VAT rate by 2.5 percent a year ago. Base Inflation does continue to rise despite the long recession which has negative connotations for the long term.
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