Inflation hits 3.5 per cent

Consumer price inflation rose even higher than most experts predicted in January to 3.5 per cent.

This is well above the target rate of 2 per cent, though the Bank of England believes it is unlikely to stay at this level and will soon fall.

The Office for National Statistics said consumer price inflation rose to 3.5 per cent last month from 2.9 per cent in December, its highest level since November 2008.

Bank of England Governor Mervyn King will now have to write a letter explaining why the central bank has missed its inflation target by more than a percentage point.