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UK consumer price inflation rises to 3.2%

Consumer price inflation in Britain rose unexpectedly to 3.2 per cent year-on-year last month, official data showed yesterday, forcing Bank of England governor Mervyn King to write a letter explaining why it remains so far above the 2 per cent target.

Analysts had expected the headline CPI figure to ease to 2.6 per cent from 3 per cent in January.

In a letter to chancellor Alistair Darling explaining why inflation remains strong, Mr King said the figure could reflect the transmission of weak sterling to consumer prices.

However, he said the central bank believed the sharp decline in CPI inflation was likely to resume in the next few months when lower energy prices and slower demand growth feed through.

UAE airline appoints two Irish

Etihad Airways, the national airline of the United Arab Emirates, has appointed two Irish-born executives to its management team.

Ray Gammell (46), from Greystones, Co Wicklow, has been appointed to the position of chief people and performance officer, and joins from Royal Bank of Scotland.

Jim Callaghan (40), from Trim, Co Meath, has been appointed general counsel and executive vice-president, responsible for the airline’s legal affairs. Mr Callaghan joins Etihad from Ryanair.

Nationwide opens branch in Ireland

British-based Nationwide, reputed to be the world’s largest building society with assets of about £200 billion, has opened an Irish branch.

The society has launched three savings products in Ireland and has not ruled out entering the mortgage market or opening retail branches at a later date.

Nationwide UK (Ireland) will employ 19 at its office at Spencer Dock in Dublin.

Dragon Oil defends financial position

Dublin and London-listed exploration company Dragon Oil said yesterday an investigation into purchasing irregularities by former senior managers at the group will not affect its financial position.

The company, which is 52 per cent owned by the government of Dubai, issued a statement on February 26th saying that it was investigating “certain possible irregularities identified in its procurement procedures”.

The investigation forced the company to delay the publication of its 2008 results while Dragon considered its findings.

The group said it will now announce its full-year results on Friday.

Preliminary findings from the investigation, which was carried out by KPMG, indicate that improper conduct relating to procurement activities was confined to the group’s marketing and contracts departments.

Lloyd’s pretax profit down 51%

Lloyd’s of London, the world’s biggest insurance market, said pretax profit declined 51 per cent last year on lower investment returns. Profit before tax dropped to £1.9 billion (€2 billion), from £3.8 billion in 2007, the London-based market said.

Investment returns fell to £957 million from £2 billion a year earlier.

“The market has inevitably been impacted by significant claims from natural catastrophes, lower insurance rates and a reduction in investment income,” said chairman Peter Levene.

Charter Medical Group

In an article in last Friday’s (March 20th) Business This Week, it was stated that property developer Paddy Kelly’s Requartz group had backed Charter Medical Group.

Charter Medical Group would like to point out that Mr Kelly is no longer a shareholder in the group.