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Inflation reaches high of 1.5%

CPI inflation reached a five-month high in November, rising by 0.3% to 1.5%, the Office for National Statistics has revealed.

The main reason for the increase was a rise in transport costs, particualrly air fares, and an increase in the cost of household utility bills

The Retail Prices Index of inflation (RPI) also rose in November, from 3.3% to 3.4%

While inflation remains below the Government's target of 2%, some experts are now predicting that the Bank of England's Monetarry Policy Committee may need to consider increasing interest rates in 2005.