LONDON — U.K. inflation came in at an annual 7% in March, its highest since for 30 years.

Consumer prices increased by 1.1% month over month, surpassing expectations. The 0.7% increase was predicted in a Reuters poll, while economists had expected a 6.7% annual rise. This is the largest annual change in the historical model series’ consumer price index (CPI) since March 1992.

It Bank of EnglandIt has increased interest rates in three consecutive meetings of monetary policy, increasing borrowing costs from 0.1% to 0.75%. This is to control runaway inflation and not stomp out economic growth.

The world’s central banks are faced with a difficult task: balancing rising inflation against signs of slower economic growth. This is compounded by the Russia-Ukraine conflict, which has hampered economies’ recovery after the Covid-19 pandemic.

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