Pound jumps after hot UK inflation ‘cements’ quarter-point hike

The rise in consumer prices comes ahead of the Bank of England policy decision on Thursday.

The pound rose as traders firmed up bets on a quarter-point hike by the Bank of England on Thursday after inflation unexpectedly accelerated.

UK currency rose as much as 0.4% after data showed inflation advanced to 10.4% in February, surpassing all estimates in a Bloomberg survey. Core inflation reached to 6.2% from a year ago, well above the median forecast of 5.7%.