UK inflation spike 'unlikely to persist' but could turn sticky

BoE rate hike expected

This morning's news that UK CPI had risen to 10.4% in February has shattered hopes for many that the Bank of England may halt rate hikes, analysts said.

The expectation had been that inflation would have continued its slow decline from 10.1% in January to 9.9% in February, but that trajectory was swiftly turned upside down. Danni Hewson, AJ Bell's head of financial analysis, said the recent shortages of vegetables had contributed to the February increase, alongside bars and restaurants trying to lure back customers after a lacklustre Christmas. But these drivers were mostly "unseasonable" and "unpredictable", he added. UK inflation unexpectedly jumps to 10.4% in February That is why Modupe Adegbembo, economist at AXA Investment ...