Why 4.5% inflation won't mean interest rate rises | This is Money

Why 4.5% inflation won't mean interest rate rises | This is Money

Inflation is on the rise again, but fund manager Mike Riddell believes there are good reasons for the MPC to resist calls for interest rate rises.

UK consumer price index (CPI) inflation jumped from 4.0% to 4.5%, versus expectations of only a slight increase to 4.1%. Core CPI, which strips out food and energy prices, soared from 3.2% to 3.7% and is now at easily a record high (data goes back to 1997).

One bank called the inflation numbers shocking, arguing other economies aren't seeing anything like this surge in core inflation, UK monetary policy is too loose and the MPC should hike rates in August.