Untamed British inflation raises alarm across Europe

Share prices fell sharply amid fears further interest rate hikes are inevitable 

Investors looked beyond the sharp fall in the headline annual rate of British consumer price inflation to 8.7% in April from over 10% in March to focus instead on the leap in core inflation to a 31-year high of 6.8%, as 'evidence that price pressures are becoming increasingly domestically generated'.

Untamed price pressures in Britain set off alarm bells for a potential UK recession, sending shares sharply lower across Europe on fears further sharp increases in interest rate hikes are on their way. 

Investors looked beyond the sharp fall in the headline annual rate of British consumer price inflation to 8.7% in April from over 10% in March to focus instead on the leap in core inflation to a 31-year high of 6.8%, as "evidence that price pressures are becoming increasingly domestically generated", Capital Economics warned.