British Inflation Edges Up
LONDON (AP) _ British inflation hit an annual rate of 2.8 percent in October, up from the previous month and above the government’s target of 2.5 percent for the fifth straight month, official statistics showed Tuesday.
Inflation had stood at 2.7 percent in September.
The Bank of England, worried about keeping inflation within Britain’s target levels, raised interest rates last week by a quarter point, with the overnight repo rate rising to 7.25 percent from 7 percent.
The repo rate is the lowest rate at which the central bank makes overnight loans to commercial banks.
Britain has raised interest rates five times, for a total of 1.25 percentage points, since the Labor government took office in May.