Inflation rate in the U.K. for April at highest since 2002 (Bloomberg) (13-05-2008)

May 13 (Bloomberg) -- The Bank of England will be finding it harder to reduce rates to spur growth as the inflation rate has surged the most since 2002 to the highest in more than a year.

The Office of National Statistics said in London today that consumer prices are up by 3% from a year earlier, and from 2.5 percent in March. Prices have risen by 0.8% in one month on food and energy costs and are currently within 0.1 percentage point of the government's upper limit, adding to the danger that higher consumer prices become entrenched in the economy.

The pound rose as much as 0.3 percent against the dollar after the report and traded at $1.9482 as of 10:20 a.m. in London. Yields on two-year government bonds jumped 10 basis points to 4.431 percent.

  Source Bloomberg