The Governor of the Bank of England, Sir Mervyn King, has claimed the UK's economy has "cause for optimism" and that a long awaited recovery is in sight, despite a prediction that inflation will worsen over the next two years.
Delivering the Bank of England's quarterly Inflation Report, Sir Mervyn stated that he expects inflation to climb to at least 3% by the middle of this year, remaining above the Government's target of 2%.
Higher utility bills and increases in university tuition fees were cited as two main factors in recent increases to inflation.
"The UK economy is set for a recovery," he said. "That isn't to say the road ahead will be smooth. This hasn't been a normal recession and it won't be a normal recovery."
The Office for National Statistics yesterday announced that the Consumer Prices Index remained at 2.70% during January for the third consecutive month.
Compare the best savings rates
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.