Bank of England
Media playback is unsupported on your device
Video

Inflation will rise sharply, says Mervyn King

Inflation will rise sharply in the first half of this year before falling back next year, the Governor of the Bank of England, Mervyn King, has said.

But he said there were "large risks" that inflation could overshoot or undershoot the Bank's 2% target.

The BBC's Economics Editor Stephanie Flanders has more details.

Go to next video: Inflation hits UK high street