UK Inflation jumps in April, deepens BoE dilemma

(Reuters) – Annual inflation hit a 2-1/2 year high last month and core prices rose at a record pace, deepening the policy dilemma for the Bank of England as it keeps interest rates low to support a sluggish economy.

Consumer prices rose a bigger-than-expected 4.5 percent year-on-year, the fastest pace on increase since October 2008, propelled by soaring travel costs around Easter and higher duty on alcohol and tobacco.

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