Stubbornly high inflation increases pressure for interest rate hike

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Stubbornly high inflation increases pressure for interest rate hike
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Watch Ian King Live as official figures reveal the rate of price rises remained at 8.7% despite expectations of a fall

The rate of price rises has remained at 8.7% despite expectations of a fall, according to official figures.

The rate has been kept high due to the rising cost of second-hand cars, live music events and computer games, the ONS chief economist said, though they were partially offset by the fall in petrol prices. More expensive flights were also partially to blame, the ONS said.in March next year but could reach the new high as soon as December.High interest rates mean more expensive borrowing with more costly mortgage bills likely.

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