Bank of England – Page 6

U.K. Inflation Swings Upward, in a U-Turn

Prices in Britain reversed a recent downward trend, rising by 10.4 percent in the year through February.

Investors are still spooked after UBS bought its Swiss peer, with confidence in the banking sector in short supply.

January was the third month of declines in the inflation rate, but the double-digit increase shows Britain’s cost-of-living crisis persisting.

Economic growth was unchanged in the fourth quarter, and slow expansion is expected in the years ahead.

A half-point rate increase, to 4 percent, the highest since 2008, is widely expected as the central bank continues its campaign to control inflation.