UK inflation probably reached a new four-decade high above 9% in May, underscoring the challenge for the Bank of England as it threatens faster interest-rate increases in response. A week after surging US consumer prices prompted an accelerated 75 basis-point hike from the Federal Reserve amid spasms in global financial markets, the British data will offer investors another chance to ask if the reaction of policy makers is adequate. While the median prediction of economists for inflation on Wednesday anticipates an increase to 9.1%, one estimate -- by Natixis SA -- suggests an outcome of 10%. The BOE reckons the peak ... (full story)