British inflation soared to 4.5 percent in April, official data showed Tuesday, hitting a two-and-a-half-year high and stoking the prospect of an interest rate hike from the Bank of England. Consumer Prices Index (CPI) inflation - the government's target measure - hit the highest level since September 2008, when it hit 5.2 percent, the Office for National Statistics (ONS) said in a statement.
April's reading, which followed a rate of 4.0 percent in March, overshot market expectations of 4.2 percent, Dow Jones Newswires said. The cost of living jumped on the back of soaring prices for air, sea and rail tickets over the Easter holiday break. Inflation was also propelled by rising prices for alcoholic drinks, tobacco, and domestic gas and electricity. In reaction, the British pound leapt against the euro and the dollar, as dealers bet on the increased likelihood of a near-term hike in interest rates.
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