UK unemployment rises by 14,000

UK unemployment rose by 14,000 to 1.61 million in the three months to March, official figures show. The number of people claiming Jobseeker's Allowance climbed by 7,200 to 806,300 last month, the Office for National Statistics (ONS) said. Analysts warned the figures may indicate that global financial problems were hitting the UK and could impact the labour market in coming months. The unemployment rate was unchanged at 5.2% in the three months to March. The figures come amid signs that the UK economy is slowing. At the same time, inflation has picked up, driven by higher food and fuel costs. Read the details here.

The Independent had the headline today 'The spectre of 'stagflation'; a combination of stagnant output and high inflation not seen for decades is set to haunt policy makers for months if not years to come. Click here for the article.

Click for video from BBC News with an anlaysis of the change in Unemployment. The commnetator also makes the point that employment has also increased, with an attempt to explain how this can be the case.

With inflation rising to 3%, how influential will this rise in unemployment be in persuading the MPC to cut rates when it meets next month?