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Inflation exceeds target again, hitting 16-year high at 4.7 per cent

By Bridgid Nzekwu

Updated on 16 September 2008

Inflation hits a 16-year high of 4.7 per cent, above the Bank of England's target for the third month in a row.

Higher energy prices and food bills have bee blamed for the rise from 4.4 per cent in July.

The bank's governor, Mervyn King, said inflation should peak soon at around 5 per cent, as he tried to explain the rate rise in a letter to the chancellor.

The retail price index, which includes housing costs, came down slightly.

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