Economics
U.K. Inflation Surges on Pound Slump as May's Brexit Takes Shape
- Carney has warned of inflation headwinds from weaker currency
- Prime minister says U.K. will leave EU single market
Pound Feels Pressure of Hard Brexit Concerns
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U.K. inflation accelerated to the fastest pace in more than two years in December as the pound’s decline drove a surge in import costs.
As Brexit uncertainty hung over the U.K. currency, consumer-price growth increased to 1.6 percent from 1.2 percent in November, a bigger jump than economists had forecast. Although the pound is still down 17 percent since the June vote to leave the European Union, it rose on Tuesday after Prime Minister Theresa May said Parliament will get a vote on the final deal to pull Britain out of the bloc’s single market.