Inflation set to rise again
Inflation figures are set to be released today, with the Consumer Price Index expected to be close to 5%.
According to the BBC, this figure will be used to set to set the rise in state pension and Jobseekers Allowance next April. 2012 will be the first year benefits have increased with inflation, rather than the Retail Prices Index.
However if the UK does see a rise of 5%, it will put further pressure on the chancellor’s austerity budget, although it will also provide a relief to claimants struggling to cope with rising prices.
Inflation has already been predicted to rise to 5% by the Bank of England due to higher utility bills, as all six of the main electricity suppliers have announced price rises in the past few months.
Investec expect inflation to hit 5.1% today, which would be the highest level since 2008.