Inflation has continued its rapid upwards movement. The RPI was 5.5% higher in February 2011 than a year ago, and the Bank’s target rate CPI was 4.4% up, or 120% above the 2% target. We are paying the price of the devalued pound, the low interest rates and the quantitative easing. These high prices will squeeze consumers more. The Bank set interest rates which were too low over a year ago, as we discussed on this site at the time.