UK Inflation Sticks Above 10%, Lifting Prospect of Rate Hike

  • Pound jumps and UK government bonds sink after report
  • Figures strengthen the case for another BOE rate hike in May
WATCH: The higher-than-expected CPI figure strengthens the case of more interest-rate increases by the BOE. Lizzy Burden reports.Source: Bloomberg
Lock
This article is for subscribers only.

Britain’s inflation rate remained stubbornly high in double digits in March, another surprisingly strong reading that will strengthen the case for more interest rate rises at the Bank of England.

The Consumer Prices Index rose 10.1% from a year ago, driven by the strongest increase in food prices in more than four decades, the Office for National Statistics said Wednesday. Economists had expected a slowdown to 9.8%.