Bank of England Governor Mervyn King said that inflation will likely continue to rise during the first half of the year, but would fall back to an acceptable level beginning in the second half of 2011. King said that rising food and energy prices are responsible for the increase in inflation.
King was once again required to write a letter to the Chancellor to explain how inflation – as measured by the Consumer Price Index (CPI) – rose 4 percent in January from 3 percent in December.
Source: BBC News
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