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UK consumer inflation rises to 3 ½-year high of 2.7 percent

Posted May 16

— Britain's consumer price inflation rate rose to 2.7 percent in April from 2.3 percent a month earlier, as the pound's drop since Britain's vote to leave the European Union continues to push up the cost of everyday goods.

The Office for National Statistics said Tuesday that the annual rate is the highest since September 2013.

Rising prices for clothing, electricity and airfares contributed to the increase.

The Bank of England said last week that rising inflation driven by the market turmoil over Brexit was starting to hurt consumers, and wages were failing to keep up.

The bank expects inflation to hit 3 percent later this year then ease back down, and wages to pick up in 2018 — if Britain gets a new trade deal with the EU.

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