UK Latest: Higher-Than-Expected Inflation Adds Pressure on BOE to Hike Rates

The transcript discusses the unexpected rise in core inflation rates, which exceeded both economists' and the Bank of England's forecasts. The analysis highlights the challenges in economic forecasting, particularly the assumption that inflation would decrease as quickly as it rose. The impact of base effects, such as the previous year's energy bill increases, is noted, along with the persistent high food price inflation affecting the poorest. Concerns are raised about core inflation, excluding food and energy, which has risen unexpectedly. This has led to traders adjusting their expectations for peak interest rates.

How is the fall in inflation primarily accounted for according to the text?

What concerns are raised about core inflation in the text?