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Inflation set to peak

Rate-setters at the Bank of England will hope that Tuesday's inflation figures mark the peak in the spiralling cost of living seen this year.

Inflation was driven upwards to 4.7% in August by rising oil, food and energy prices to stand at more than double the Bank's official 2% target.

Investec economist Philip Shaw said he expects September's inflation figure to jump to 5.2% before falling back.

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