UK Inflation Remains High Despite Some Relief in Grocery Prices

UK inflation rate remained at 10.1% in March, driven by the strongest increase in food prices in more than four decades, strengthening the case for more interest rate rises at the Bank of England. Investors quickly moved to price in further rate hikes, with money-market traders pricing a peak BOE interest-rate of more than 5% this cycle, the highest this year. The pound edged higher against the dollar and gilts fell as the market adjusted to the prospect of steeper rate increases.