UK Inflation Rate Falls Less Than Expected, Causing Investors to Bet on Further Interest Rate Hikes

The inflation rate cooled to 8.7% from 10.1% in March, but it is still the joint highest among Group of Seven advanced economies.

Core inflation, which excludes energy, food, and tobacco prices, hit a 31-year high, raising the chances of more interest rate hikes.

The government's bond prices plunged as investors piled on bets that the BoE will raise interest rates repeatedly until the end of the year.

The surge in inflation is a problem for the government and the BoE as it erodes the spending power of workers whose pay is rising by less.

The data offered some signs that price rises for goods will slow, potentially helping soften some of the pain for consumers.