UK Inflation Higher Than Expected

UK Inflation Higher Than Expected

The latest reading of UK consumer price inflation shocked markets. UK CPI rose to 3.0% in April from 2.5%. The reading had a negative effect on all European markets, as this leaves the Bank of England in a similarly tough position as the European Central Bank, with growth slowing and inflation rising. "We think it will be difficult for the (BOE's) Monetary Policy Committee to cut rates with inflation at these levels," said David Page, economist at Investec Securities in London. Today, the Bank of England will issue its inflation report, and the US will release consumer inflation figures.

So the Pound's woes continue