The Governor of the Bank of England warned yesterday that inflation could rise to at least 4% towards the end of the year.

Learning to be more frugal and live with the rising cost of living is set to be on the agenda of every household in the UK.

The main culprits for the rise of inflation to its current level of 3.3% (1.3% above the Governments target) are said to be food, fuel, gas and electricity.

The Governor of the Bank of England, Mervyn King suggests this will only be temporary but will rely on the MPC (Monetary Policy Committee) making the right decisions about interest rates over the coming months.