Economics
U.K. Inflation’s Jump Above BOE Goal Heats Up Debate on Prices
- Fuel, clothing and recreational goods prices powered increase
- Pound rises 0.3% after data, BOE rate-hike bets little changed
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U.K. inflation surged unexpectedly past the Bank of England’s target for the first time in almost two years, lifting the pound and adding to speculation about when monetary policy could be tightened.
Consumer prices rose 2.1% from a year earlier, the highest since July 2019, the Office for National Statistics said Wednesday. Economists and the BOE had expected an increase of 1.8%. Core inflation jumped to 2%, the most since August 2018.