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Surprise rise in UK inflation

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Surprise rise in UK inflation

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Inflation in Britain rose unexpectedly in February and hit 3.2 percent.

As a result the governor of the Bank of England Mervyn King has to write a letter to the government explaining why inflation remains so far above the bank’s target of two percent. King said the weakness of the British pound was probably to blame. That pushed up food prices and made fuel more expensive. Compared with a year ago inflation was unchanged. That means the UK is not – yet – experiencing deflation.