Britain’s stubbornly high inflation rate fell by less than expected last month and a closely watched measure of core price rises surged to a 31-year high, according to official data that raised the chances of more interest rate hikes.
Consumer prices rose by 8.7% in annual terms in April, down from 10.1% in March but still leaving Britain with the joint highest rate of inflation among Group of Seven advanced economies alongside Italy.
In Western Europe, only Austria had a higher rate.
Economists polled by Reuters had forecast that the headline CPI annual rate would drop to 8.2% in April, moving further away from October’s 41-year high of 11.1%.
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