Official figures show that inflation in Britain rose in April above the Bank of England’s target rate following an uptick in energy prices and airfares.
The Office for National Statistics said Wednesday that consumer prices in the year to April were up 2.1 percent, against 1.9 percent in March. The bank’s target is 2 percent.
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Many economists think the bank’s rate-setting panel may look to raise interest rates again during the summer even though Brexit uncertainty is expected to weigh on the British economy for a while yet.
Britain has been granted an extension to its departure from the European Union until Oct. 31. With uncertainty still prevalent, the pound has fallen sharply in recent few weeks, and that’s set to elevate inflation by raising the cost of imports.
