Interest Rate On Path To Hit A Shock 5.5%

Bank of England's inflation battle

- GRAHAM HISCOTT

INTEREST rates could surge to almost 5.5% in a desperate bid to tackle high living costs.

Inflation as measured by the Consumer Price Index - eased from 10.1% in March to 8.7% last month, the Office for National Statistics said.

But that was higher than forecast and more than four times the Bank of England's 2% target.

Economists reckon the under-fire Bank will hike rates again, starting next month from 4.5% to 4.75%.