OUR inflation V Britannia remained higher-than-expected, with the biggest growth in more than three decades in services and essential products, prompting a number of forecasts of a further hike in the key rate from Bank of England.

Significantly, inflation reached 8.7% in April, which means it moved at higher levels than any of the 36 estimates made by economists, or from the Central Bank’s forecast of 8.4% inflation.

Core inflation (excluding energy and food prices) strengthened to 6.8% last month from 6.2% in March. The figures overshadowed the fact that inflation fell to single digits for the first time in 8 months, while at the same time increasing pressure on the Bank of England to keep raising lending rates throughout the summer.

“With inflation remaining unwavering compared to the bank’s expectations, it now looks almost certain that the bank will raise interest rates from 4.5% to 4.75% in June and possibly a little more in the coming months,” says Paul Dulles, chief Economist at Capital Economics.

The yield on 10-year bonds rose by 20 basis points to 4.37%, to the level of last year after the adoption of the UK government budget. “A smaller-than-expected fall in inflation in April forces the Bank of England to raise interest rates again in June. The risk, as we explain here, is that interest rates must rise above 5% to ease price pressures,” Dan Hanson and Anna Andrade of Bloomberg Economics said. Prime Minister Rishi Sunak said that “we should not be complacent about inflation” and that “there is still work to be done”. “We are offering significant support to help people with a living wage, while the finance minister has met with companies from the supermarket and supply chain sectors to make sure they are doing everything they can to keep prices down,” he pointed to questions. put it in parliament. He promised that inflation would be halved this year.