Governor of the Bank of England, Mervyn King stated that the low amount of money in the economy will control inflation and bring it to the 2% target in the medium term; therefore this meant that the UK is not yet going to pull the stimulus measures from the economies like other major nations.

The latest climb in inflation rates is temporarily as King stated in a speech at Exeter University in England yesterday, as the rise was a result of the weak pound and the reversal of the VAT cut which will help push inflation higher, while also stated was how the government was going to shrink the record high budget deficit.