The Bank of England (BoE) has announced it will raise interest rates from 4.25 per cent to 4.5 per cent.
UK inflation is expected to fall slower than previously expected while food prices will remain high, the BoE has said. Higher food prices have been partly blamed on Russia's war with Ukraine as well as poor harvests in some European countries, indirectly increasing the cost of living in the UK.
Meanwhile, Consumer Price Index (CPI) inflation is expected to decline slower than the Bank previously predicted in February's report. However, inflation levels are expected to drop significantly from April this year due to declining energy prices and subsidised household bills, the Monetary Policy Committee said.
