18 March 2008
February's level of inflation will have jumped because of higher electricity and gas prices, analysts have suggested.
Reuters polled a number of experts and they said that inflation is likely to rise by 0.8% leading to an annual rate of 2.5%.
Investec's Philip Shaw stated that electricity charges increased by 9.5% in the month, while gas prices were 13% higher.
Capital Economics official Paul Dales added that the Governor at the Bank of England Mervyn King may have to write to Chancellor Alastair Darling to explain why inflation is so high.
"For now, our profile suggests that inflation will peak at 2.9% but further rises in food and energy prices could have Mr King reaching for his pen," he commented.
He added that it is "touch and go" whether such a development will take place.
If inflation hits 3% Mr King will have to make contact with the politician, something he had to do when Gordon Brown was chancellor in April 2007.
© 2008 Adfero Ltd
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