UK inflation hits 2.1% but monetary policy remains slave to Brexit

Inflation above 2% for first this this year

A rise in UK inflation back above the Bank of England's 2% target rate will not change the thinking of its Monetary Policy Committee with regards to interest rates, experts said on Wednesday (22 May).

The UK's consumer price index breached the target for the first time this year, rising to 2.1% in April, from 1.9% last month - a slightly more modest rise than expected. It's the first time the 2% level has been broken since December and was attributed largely to higher energy prices including electricity and gas, which jumped by 10.5% and 14.1% respectively. Lacklustre December helps push GDP growth to 0.5% in Q1 Many analysts think above-target inflation is here to stay, but that it is unlikely to influence the direction of interest rates with Brexit the determining issue for th...