Inflation in the United Kingdom came in at an annualized 7% in March, its highest level in 30
years as soaring food and energy prices continue to pressure consumers.
Consumer prices rose by 1.1% on a monthly basis, exceeding economist expectations for a
0.7% increase from February. Economists also expected a 6.7% annual increase in inflation.
The 7% annual rise in the consumer price index (CPI) is the highest since 1992, and ahead of
the 6.2% yearly increase recorded in February of this year.
The Bank of England has hiked interest rates at three consecutive monetary policy meetings,
raising the costs of borrowing from a historic low of 0.1% to 0.75%, as it looks to contain
runaway inflation without curtailing economic growth.
The inflation reading in the United Kingdom comes a day after it was revealed that the U.S.
inflation rate in March rose an annualized 8.5%, which is the highest level since 1981 and has
prompted calls for the U.S. Federal Reserve to hike interest rates more aggressively.
