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This week’s decision by the Bank of England to cut interest rates has the potential to increase inflation, cautions Fool.co.uk.According to the price comparison service, many experts had anticipated the move to lower the borrowing rate to 5.25, a reduction of a quarter-point. Nonetheless, higher oil prices and increases in energy costs have already stimulated inflationary pressure, and the rate cut could increase that pressure.

The fear of recession seems to be more important to the monetary policy committee than the threat of inflation, according to Fool.co.uk.

David Kuo, head of personal finance for the web resource warns consumers to shop for the highest return on their savings. The Bank of England may choose to ignore the problem, but inflation can eat into personal savings.

The demand for secured loans is expected to increase during the first three months of this year as other sources of credit dry up, according to the Bank of England.

E.ON, one of the leading gas and power companies in the UK, is increasing its rates, and one price forecasting company predicts that the move will increase household bills for some customers.The average annual bill for a dual fuel customer with E.ON will rise from £913 to £1,063, according to uSwitch.com.

On February 8, the company formerly know as Powergen will begin to implement its price increase. It is the latest in a series of increases from UK power companies.

Scottish & Southern Energy has assured customers that it will not raise rates until March, says Ann Robinson, director of consumer policy for uSwitch. Other major suppliers have all increased rates in recent months.

Ms. Robinson points out that customers who comparison shop can set themselves up for savings of £325.

A report in the Observer suggests that more Britons could decide to take out debt consolidation loans this year.

People planning to celebrate Valentine’s Day abroad need to be aware that they may encounter unexpected costs when they use their cards, warns Nationwide Building Society.Credit card companies charged customers an additional £27 million last year, according to Nationwide.

They recommend that people steer clear of providers that charge an additional amount for charges made abroad. In some cases, it might be better to use a debit card for purchases.

In addition, they remind consumers that Dynamic Currency Conversion, which permits the customer to pay in sterling or local exchange, might actually wind up costing more since the retailer has the option to set the conversion rate.

Jeremy Wood, the divisional director at Nationwide, encourages couples who are planning a special trip out of the country this Valentine’s Day to pay attention to unadvertised and unnecessary charges, as they can add up.

Those who are struggling with a large burden of debt might consider a debt consolidation loan, advises Iain Wrenshall, director of Debt Help UK.