Pound in 6-year high

LONDON — The British pound spiked near a six-year high against the dollar Tuesday after a surprisingly big increase in UK inflation fueled expectations that the Bank of England may start raising interest rates soon, possibly by the end of the year.

Figures Tuesday from the Office for National Statistics showed consumer prices rose by an annual rate of 1.9 percent in June, just below the Bank’s ostensible target of 2 percent. Inflation, which rose from May’s 4 1/2-year low of 1.5 percent, is now at its highest level since January.

The consensus in the markets was for a far more modest increase of 1.6 percent rise. The forecast-busting figures gave the British pound a further boost to $1.7192 at one stage. (AP)