Interest Rate Blow After Inflation Rise

Summary


Hopes that the Bank of England might try to revive the nervous housing market and increasingly hesitant consumer confidence with an interest rate cut next month took a blow yesterday with news that inflation was quickening last month, not retreating as many economists had supposed.

Prices rose in December at their fastest annual rate in six months, driven by dearer furniture, toys and games, while sharply rising gas and electricity bills continued to boost the cost of housing.

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Interest Rate Blow After Inflation Rise

The consumer price index rose by 1.6 per cent over 2004, National Statistics said, up from 1.5 per cent in the 12 months to November.

That is s...

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