London, May 24 (BNA): Britain’s high rate of inflation fell less-than-expected last month and a closely watched measure of rises in core prices rose to a 31-year high, according to official data that increased chances of a rate hike. .
Consumer prices rose 8.7% year-on-year in April, down from 10.1% in March, but still left Britain with the joint-highest inflation rate among the G7 advanced economies along with Italy, Reuters reported.
In Western Europe, only Austria’s rate was higher.
Economists polled by Reuters had expected the annual core CPI rate to fall to 8.2% in April, further away from October’s 41-year high of 11.1%.
Earlier this month, the Bank of England forecast inflation of 8.4% for the month of April.
UK government bond prices fell as investors bet that the Bank of England would have to raise interest rates repeatedly until the end of the year.
MI