Inflation jumps to 3.4%

Inflation rose to a higher-than-expected 3.4% in March, according to the Office for National Statistics.

The Consumer Prices Index (CPI), the Government's preferred measure of inflation, increased from 3% in February. The rise is greater than analysts had expected, with most predicting annual inflation would hit 3.2%. An alternative inflation measure, the Retail Prices Index (RPI) jumped sharply, up from 3.7% to 4.4%. A rise in CPI could lead to the Bank of England increasing its base rate, while the RPI jump may lead to higher pay increases during wage negotiations. Schroders european economist Azad Zangana this morning's shock only marginally increases the likelihood of interest ...