And it’s set to get worse, raising fears of soaring interest rates
The soaring cost of food and petrol pushed inflation even higher than expected in new figures today, prompting fears interest rates will soon rise.
The UK’s official rate of inflation increased to 2.9% in December 2009, up from just 1.1% three months earlier.
The rise was driven by higher petrol costs and the effects of the reduction in the standard rate of VAT a year earlier dropping out of the twelve-month comparison.
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