The UK Consumer Prices Index (CPI) annual inflation rate rose to 4% in January, up from 3.7% in December, as the effects of the VAT rise were felt. The economy received a further significant boost when Standard & Poor's, the ratings agency, revised its outlook on Britain from negative to stable and confirmed the country's a credit rating. Growth over the past six months reached 2 per cent, the fastest pace of expansion over two consecutive quarters since 2000, acc. to the office for National Statistics (ONS).
Interest rates have been at historically low levels since the credit crisis took hold with the Bank of England keeping rates at 0.5 per cent since March last year. It had been expected there would be little change before the end of next year but on the back of yesterday's strong growth figures some traders were predicting two rate rises before then with a base rate of at least 1 per cent by the end of 2011.Ian Harwood, economist at Evolution Securities said that even when the impact of indirect taxes like VAT were stripped out, the annual rate was 2.4pc, up from the previous month's 2pc.
The forecast has modulated so far this year B/w a mid-2014 & mid-2015 prediction. Today, the market points to December 2014, leaping forward from mid-2015 just a few days before. Meanwhile, a Reuters poll showed 50% of economists expect a rate rise by the end of 2013, up from 40% two weeks ago. Referring to expected interest rate increases, he added: "The MPC's central judgment, under the assumption that Bank rate increases in line with market expectations, remains that inflation will fall back so that it is about as likely to be above the target as below it two to three years ahead." Need loan apply with one month loan [http://www.onemonthloan.org.uk/] and get cash with fast approvals.
The price of petrol as measured by the CPI was £1.27 a liter in January 2011, which the ONS said was a record high. Other contributing factors included rising costs of transport, restaurants and hotels, furniture & alcohol. The monthly figures are the first to include the effects of the rise in VAT from 17.5% to 20%, which took place on 4 January."Two of the main factors that had an impact on the January data are the increase in the standard rate of Value Added Tax (VAT) to 20% & the continued increase in the price of crude oil.
Interest rates have been at historically low levels since the credit crisis took hold with the Bank of England keeping rates at 0.5 per cent since March last year. It had been expected there would be little change before the end of next year but on the back of yesterday's strong growth figures some traders were predicting two rate rises before then with a base rate of at least 1 per cent by the end of 2011.Ian Harwood, economist at Evolution Securities said that even when the impact of indirect taxes like VAT were stripped out, the annual rate was 2.4pc, up from the previous month's 2pc.
The forecast has modulated so far this year B/w a mid-2014 & mid-2015 prediction. Today, the market points to December 2014, leaping forward from mid-2015 just a few days before. Meanwhile, a Reuters poll showed 50% of economists expect a rate rise by the end of 2013, up from 40% two weeks ago. Referring to expected interest rate increases, he added: "The MPC's central judgment, under the assumption that Bank rate increases in line with market expectations, remains that inflation will fall back so that it is about as likely to be above the target as below it two to three years ahead." Need loan apply with one month loan [http://www.onemonthloan.org.uk/] and get cash with fast approvals.
The price of petrol as measured by the CPI was £1.27 a liter in January 2011, which the ONS said was a record high. Other contributing factors included rising costs of transport, restaurants and hotels, furniture & alcohol. The monthly figures are the first to include the effects of the rise in VAT from 17.5% to 20%, which took place on 4 January."Two of the main factors that had an impact on the January data are the increase in the standard rate of Value Added Tax (VAT) to 20% & the continued increase in the price of crude oil.