Inflation hits record level

According to the latest Office of National Statistics (ONS) report the Consumer Price Index (CPI) annual inflation, the government’s target measure, was 3.7% in December up from 3.3% in November, bringing inflation to its highest level since April last year.

Companies could be affected by the unexpected high inflation rate as it is likely to lead to workers’ demand for higher wages, economists have said, as the effects of the cutbacks and VAT increase are felt.

Analysts had predicted that CPI would rise by 1% in December and were surprised by the extent of the increase. Howard Archer, chief UK economist at IHS Global Insight, told The Guardian that December’s data was “horrible”.

Read full article: http://www.growingbusiness.co.uk/inflation-hits-record-level.html

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