UK inflation surges to its fastest in more than nine years

The central bank (pic) has forecast that inflation will reach 4% by the end of this year, double its target, and then fall back in both 2022 and 2023. Investors are starting to anticipate that policy makers may have to boost interest rates as early as next year to keep the economy from overheating.

LONDON: Britain’s inflation surged more than expected to the strongest pace in more than nine years, prompting investors to anticipate a sharper increase in interest rates next year.

Consumer prices jumped 3.2% in August from a year ago, the most since March 2012, after dipping back to the central bank’s 2% target the month before, the Office for National Statistics (ONS) said yesterday. The reading was above the highest estimate in a Bloomberg survey.