UK inflation hits 4.7% in August
The annual rate of UK inflation rose to 4.7% in August, up from 4.4% in July.
Mervyn King, The Bank of England Governor has been forced to write a letter to chancellor Alistair Darling explaining why the rate of inflation is higher than the 2% target of the government.
The rising rate of inflation is blamed on rising food and oil prices.
While inflation continues to rise the Bank of England are not able to seriously consider a cut in interest rates to assist the UK economy.
However, oil prices have fallen from almost $150 a barrel last month, leading some experts to predict that inflation could be nearing its peak.
