Bank plays down inflation threat
The Bank of England's governor on Tuesday sought to allay fears that price pressures could hamper the British economy, saying high inflation would prove short lived.
Annual CPI inflation hit 3.5% in January, 1.5 percentage points above the central bank's target, meaning Mervyn King, the governor of the Bank, was forced to write his third letter to the chancellor of the exchequer explaining why the measure had veered so far from the 2% target.
However, King said in the letter that as the
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