British inflation set to accelerate

London: British inflation held at the fastest pace since October 2008 last month as Bank of England policy maker Martin Weale repeated his call for higher interest rates.

Consumer prices rose 4.5% in May from a year earlier, matching the increase recorded in April, the Office for National Statistics said in London. Core inflation eased to 3.3% from 3.7%.

The Bank of England kept its benchmark rate unchanged at a record low last week. Weale said there’s a “substantial risk” that inflation will accelerate to more than 5% this year and that recent “softer” data hasn’t changed his view on the need for rate increases.