Mervyn King, Bank of England Governor
Media playback is unsupported on your device

Bank of England's Mervyn King to warn of inflation rise

The level of inflation in Britain is expected to have fallen slightly in the latest figures - but it is still thought to be above the official 2% target.

Bank of England governor Mervyn King will publish an open letter to the government, explaining why price rises are more than 1% above the target level.

He will say the increase is only temporary but a drop is unlikely to happen until the end of 2011.

Nils Blythe reports.

  • 17 Aug 2010