Consumer price inflation has risen from 3.3 per cent in May to 3.8 per cent in June.  This is the highest since 1992 and nearly double the Bank of England’s 2 per cent target.

The sharp increase in food and petrol prices have been major contributory factors, food prices are over 10 per cent higher than last year, and the average price of petrol has risen 5.3p a litre in the past month to 117.6p.

Many employers fear that the speed price inflation will lead to staff demanding significant wage increases just as higher fuel and supply chain costs put financial pressure on their companies.

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By LaunchLab.co.uk  on   Jul 15,2008

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Keywords

inflation   economy   pay      

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