Persistent inflation driving central bank hikes: Fitch

ISTANBUL

Persistent inflationary pressures are driving central banks to raise interest rates at a much more rapid pace than predicted, Fitch Ratings said Friday.

Annual consumer inflation rates have risen further in recent months in the UK, Germany, France, Italy, Australia and Japan, and they remain at historically high levels in the US, Spain and Canada, the global rating agency said in a statement.

"Energy and food prices have been key drivers but core inflation pressures have also increased," it said.

Central banks have responded with further tightening -- policy interest rates have reached 4.5% in the US, 2.5% in the eurozone and 3.5% in the UK, the agency noted.

Central banks in Switzerland, Australia, Canada, India, Korea, Indonesia, Mexico and South Africa have also raised interest rates, it added.