The consumer price index confirmed yesterday's PPI as the CPI rose 0.8 percent in April the biggest gain in seven years after rising 0.4% the prior month, while compared with a year earlier prices rose 3.0% after rising 2.5% previously according to the National Statistics Office today.

Moreover core CPI rose 1.4% after rising 1.2 percent previously and above the expected 1.3%, another report showed that retail price index rose 0.9% in April after rising 0.3% back in March, while compared with a year earlier prices rose 4.2% after a reported gain of 3.8%.

Another report today showed that home prices in London started to decline to follow the lead of the rest of U.K; this could draw more concerns for the BOE, as the worst housing trouble in U.K since nearly three decades remains a threat to economic growth.

Yet the problem doesn't end here for the BOE, as the U.K credit markets started freezing in an aftermath to the worst financial crisis to hit the U.S economy since the Great Depression back in 1930s, which has spread into U.K money markets, providing a similar situation to that seen in the United States, where banks are reluctant into lending each other and Britons as well