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BOE rate hike in May? Soaring U.K. inflation will bring out the hawks, analysts say

It has happened — for the first time in more than three years, U.K. inflation has broken above the Bank of England’s 2% target, adding pressure on the central bank to raise interest rates to curb the rapid jump in consumer prices. At 2.3% for February, the consumer price index rose faster than the 2.1% forecast by analysts and now sits at the highest level since September 2013. Just a year ago, inflation was standing at 0.3%. It hit 1.8% in January. The recent surge in consumer prices was driven by a jump in fuel costs , as well as a plunge in the pound following the U.K.’s Brexit vote in June, the Office for National Statistics said.

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