Inflation reaches 2.5 year high, sterling rises

The Pound has risen this morning after inflation figures showed a 4.5% rise in prices in the year to April. This was higher than analysts expected, adding to recent expectations that the Bank of England will have to raise interest rates in the next 6 months.

Sterling spiked up sharply on the news, but has fallen back a little since, as we look to tomorrow’s Bank of England minutes to see how the committee voted on interest rates earlier this month.