UK Inflation rises to highest level since 2011

There is increased pressure for the Bank of England to raise rates as inflation surges to its decade high. The annual rate of the consumer price index rose to 4.2% last month, up from 3.1% and the fastest pace since November 2011. Inflation rose to more than the BoE’s 2% target and was considerably higher than economists’ 3.9% forecast. This rising inflation has been a result of continued surging household energy bills and increased costs for fuel and second-hand cars. Prices for restaurants and hotels have risen too. All of this points towards the Bank of England and specifically Andrew Bailey: these inflated numbers may seal his decision next month to raise rates after his choice – to the surprise of many – to not hike interest rates at this month’s meeting.