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Bank charges: Inflation 'to edge up'

Consumers experiencing hefty bank charges may be concerned to hear that inflation is going to "edge up" over the next few months.

Such is the opinion of Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, the only non-governmental economic forecasting group to use the HM Treasury model of the UK economy.

Mr Goodwin made these comments after the latest CPI figures showed that inflation had declined from 4.4 per cent to four per cent.

He said: "We would still expect to see inflation edge up a little over the coming months as the effects of further increases in oil prices feed through, but it now looks unlikely that it will move as high as five per cent."

Mr Goodwin added that he expects inflation to drop away "sharply" next year.

The Office for National Statistics announced that inflation in March dropped by 0.4 per cent on April 12th.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

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