UK inflation hits 9.4%, bolstering bets on big BoE rate hike

 Surging petrol and food prices last month pushed British inflation to its highest rate in 40 years, according to official figures that bolstered the chances of a rare half percentage-point Bank of England interest rate hike next month. We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or UK inflation hits 9.4%, bolstering bets on big BoE rate hike Back to video The Office for National Statistics said annual consumer price inflation rose in June to 9.4%, the highest since February 1982, up from May’s 9.1% and above the 9.3% consensus in a Reuters poll of economists. The latest increase means Britain had the highest rate of inflation seen in any Group of Seven advanced economy since 1985, although many smaller European Union countries are currently seeing even faster growth in prices.

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Article content Wednesday’s data bolstered bets that the BoE will opt for a 50-bps rate hike next month, which would be the biggest since 1995. The European Central Bank is considering such a move this week, sources told Reuters on Tuesday. BoE Governor Andrew Bailey on Tuesday said that scale of borrowing costs increase was on the table but not “locked in.” The BoE has raised rates five times since December as it tries to stop the surge in inflation from becoming.