The Consumer Prices Index (CPI) used by the UK to measure inflation, rose from 4.2 percent in June to 4.4 percent in July. This forced Bank of England Governor Mervyn King to once again provide a letter to the Chancellor of the Exchequer to explain why inflation continues to exceed the 2 percent target. In the letter, King referenced an increase in the value-added tax as well as higher energy costs as the underlying reasons.
Source: BBC News
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