British inflation soars as recession looms

Inflation in Britain quickened more than economists forecast in June to the fastest pace in at least 11 years, keeping pressure on the Bank of England to refrain from cutting interest rates as the threat of a recession looms.

Consumer prices climbed 3.8 percent from a year earlier, exceeding the government’s 3 percent upper limit for a second month and the highest result since records began in 1997, the Office for National Statistics said Tuesday in London. Economists forecast 3.6 percent, according to the median of 36 estimates in a Bloomberg News survey.

IHT