Chancellor of Exchequer George Osborne backed BoE's Chairman Mervyn King on his outlook for inflation in the country that continue to hover above the bank's desired rate of 2.0 percent and the government's upper limit of 3.0 percent.

Temporary factors are contributing in pushing prices higher, where Osborne backed the bank's decision on preserving rates to boost recovery, rather than shifting to control quicker inflation levels.

Osborne also said that in effort to reduce debt, the Treasury increased value-added tax (such as the increase in VAT rates) in order to allow BoE to focus on growth at the time being, while returning to the main goal of achieving price stability over the long-run in the future.

Any monetary authority and, certainly one with the competence and capability of the Bank of England, can see through temporary increases in price levels and look to permanent threats, Osborne said.

Inflation in UK spiked in January at 4.0 percent, compared with December's 3.7 percent, meanwhile, the bank preserved rates at 0.50 percent and APF program at £200.0 billion.