UK central bank may hike rates after big jump in food prices

By DANICA KIRKA
Associated Press

LONDON (AP) — A shortage of fresh vegetables last month may force the Bank of England to approve an 11th consecutive interest rate increase Thursday. The scramble for peppers, cucumbers and spinach helped push inflation to 10.4% in February, surprising analysts who expected prices to drop into single digits for the first time in seven months. Before the numbers were released Wednesday, many economists suggested the Bank of England would keep rates on hold. That’s because of concern about turmoil in the global financial system following the collapse of two U.S. banks and the ensuing turmoil at Switzerland’s Credit Suisse. But the unexpected jump in prices refocused attention on stubbornly high inflation that’s pummeling consumers and slowing economic growth.