UK inflation jumps to 10.4%, surprising analysts

LONDON (AP) — U.K. inflation accelerated for the first time in four months in February as high food and energy prices hit consumers battered by the nation’s cost-of-living crisis.

The consumer price index jumped to 10.4% in the 12 months through February from 10.1% the previous month, the Office for National Statistics said Wednesday. The figures surprised analysts who had forecast inflation would slow to 9.9%.

The figures increased pressure on the Bank of England to approve an 11th consecutive interest rate increase when it meets on Thursday, regardless of concerns about the economic impact of strains on the global banking system. Many economists now expect the central bank to boost its key bank rate by at least a quarter percentage point.

“In recent days, some have suggested that the febrile environment in the banking sector should give central banks pause for thought before raising rates further,” said Kitty Ussher, chief economist at the Institute of Directors, a business lobby. “Today’s data suggests the opposite — the Bank of England’s job is not yet done.”