Consumer inflation in the UK 'could top 4%'
I have many friends in the UK and they are already feeling the strain on their income - let alone if the prices are going to rise even higher!
The governor of the Bank of England issued that warning this morning.
He was speaking after the Office for National Statistics (ONS) said the Consumer Prices Index (CPI) rose by 3.3% in May, up from 3% in April.
This is the fastest rate since the CPI measure began in 1997, the ONS said.
The wider Retail Prices Index measure of inflation rose to 4.3% from 4.2% the previous month.
The biggest contributor to consumer inflation was the rising price of food and non-alcoholic drinks, the ONS said.
This was mainly due to the increasing cost of meat products, particularly bacon, and vegetables.
Increasing household energy bills were also a significant factor, along with the rising cost of books, stationery and foreign holidays. However, this rise in the cost of leisure and recreation was offset by a fall in the price of DVDs, according to the ONS.
If inflation rises more than one percentage point above the government's 2% target, the Bank of England governor must write a letter to the government to explain what action it is taking to control consumer prices.
In his letter to the chancellor, Bank of England governor Mervyn King blamed sharp rises in the prices of food and energy for the increase in the rate of inflation.
He also suggested that prices will rise at a faster rate in the coming months.