UK Inflation Falls
February 13th, 2007 by Chris
The UK consumer price index fell to 2.7 percent in January following an 11 year high of 3 percent in December. These high inflation rates have seen the bank of England raise interest rates three times since august in an attempt to reduce inflation to just 2 percent. The fall in inflation was mostly attributed to lower transport costs, but most analysts predict another rise in inflation soon. Inflation in the UK has been above the government set target of 2 percent for nine consecutive months now. Another interest rate rise seems to be quite possible, but many analysts believe that if raised to 5.5 percent, there will be no further rises for a substantial time.