By Ed Frankl
The U.K.’s inflation rate fell less than expected in April, kept elevated by rising food prices, and the closely watched core rate unexpectedly rose, indicating that the Bank of England may need to raise interest rates again to halt persistently high prices.
Consumer prices increased 8.7% in April compared with the same month a year earlier, down from March’s 10.1% on-year rise, data from the Office for National Statistics showed Wednesday.
Economists expected inflation to decline more, to 8.2%, according to a poll by The Wall Street Journal.
Core consumer prices–a measure that excludes the volatile categories of food and energy–was 6.8% in April, compared with 6.2% in the prior month, and well above expectations of 6.1%, as the services inflation, a key component, rose.
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This article was originally published by Marketwatch.com. Read the original article here.