Food and petrol push up inflation

Rising food and petrol prices pushed up UK inflation in January, figures show.
Last month's Consumer Prices Index (CPI) inflation figure rose to 2.2%, up from 2.1% in December. The rate is the highest since June 2007. The Retail Price Index (RPI), which includes mortgage interest payments, rose to 4.1% from 4% in December.

However, while price growth was strong, it was not as quick as many analysts had feared, boosting hopes of further interest rate cuts in the UK this year. Below trend The Bank of England cut UK interest rates last week to 5.25% from 5.5% in an attempt to prevent a major slowdown in the economy.

But the Bank signalled that it was unlikely to cut rates as sharply as the US Federal Reserve - which has slashed borrowing costs to 3% - because of fears over inflationary pressures. "It will be some time yet before the MPC's inflation concerns evaporate," said Jonathan Loynes at Capital Economics. Many analysts are predicting that the Bank will keep rates on hold in order to get a clearer picture of long-term economic and inflationary trends, and the impact slower growth will have on consumer prices.

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This article is about the rising inflation in Great Britain. In Britain Their is a direct effect between our economy and theirs . These rates could be cause by our problems right now.