U.K. Inflation Seen Rising as Stagflation-Lite Endures: Economy

U.K. inflation forecasts for this year were raised by economists, highlighting the quandary Bank of England policy makers face as they balance sustaining a recovery with the need to foster price stability.

Consumer-price increases will average 2.7 percent this year, compared with 2.6 percent seen in February, according to the median forecast of 36 economists in a Bloomberg monthly survey published today. They raised their predictions for inflation in each of the next three quarters.