Bank of England's Mervyn King to warn of inflation rise

The level of inflation in Britain is expected to have fallen slightly in the latest figures - but it is still thought to be above the official 2% target.

Bank of England governor Mervyn King will publish an open letter to the government, explaining why price rises are more than 1% above the target level.

He will say the increase is only temporary but a drop is unlikely to happen until the end of 2011.

Nils Blythe reports.