UK inflation rises towards 5%

Bank of England Governor Mervyn King stated UK inflation is likely to rise towards 5% in the coming months, putting pressure on the central bank to raise interest rates (RTE/BBC, 26-Jan-2011). King stated the BoE has been right to not raise rates over the pas 12 months, attributing the spike in inflation to a mix of one-off pressures from import prices, oil and rises in indirect taxes.