Iran war drives UK inflation
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By Devayani Sathyan April 21 (Reuters) - The Bank of England will hold interest rates steady next week and likely through the rest of the year, according to a Reuters poll of economists, who broadly stuck to the same steady policy views as last month but revised up their inflation outlook.
The Federal Reserve Bank of Cleveland's inflation-forecasting tool points to an even faster increase in prices in April, which may eventually force the Federal Open Market Committee to act. Speculation about a quick end to the Iran war and strong earnings growth stemming from the evolution of artificial intelligence clearly has investors excited.
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March CPI rose +0.9% MoM, the largest increase since 2022, showing that war-related surge in gasoline prices is pushing headline inflation higher and resetting near-term market expectations.