Despite increasing interest rates to 5.75 percent, UK inflation is again rising. The interest increases did offer some temporary relief, however, the combined effects of higher fuel and food prices pushed the inflation back onto an upward trend. The consumer price index is now 2.1 percent and now firmly above the central bank's target. The more accurate retail price index is up at 4.2 percent.
Inflation is likely to keep on rising. Yesterday, the Office of National Statistics published output prices. These numbers came in at a ten year high. This "factory gate" prices will shortly feed into consumer prices, keeping inflation on an upward trend for some time to come.