A surprise surge in the UK’s inflation rate today heaped pressure on the Bank of England ahead of its interest rates decision tomorrow.
The Office for National Statistics recorded inflation of 10.4% for February, well above City expectations for 9.9% and 10.1% the month before. The largest upward contributions came from restaurants and cafes, food, and clothing.
The evidence of stubborn price pressures will worry Bank of England policymakers as they begin their two-day meeting, with a further quarter point increase in interest rates seen as the likely outcome.
