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Growing inflation fear for UK ahead of interest rate decision

10 February 2011 Last updated at 10:42 GMT

Central banks around the world are beginning to worry more and more about inflation. China has raised interest rates for the third time since last autumn and on Thursday the Bank of England will announce whether it too may follow suit.

The UK currently has one of the highest inflation rates in the developed world. But given the state of the economy, the Bank has very few choices as Brian Milligan explains.