The U.K.'s Perilous Path - Wall Street Journal

BY RICHARD BARLEY

Which way now for the U.K. economy? Inflation is surging, public finances took a turn for the worse in February and the squeeze on wages points to a gloomy outlook for growth—all before the government's austerity cuts begin to bite. But neither the Bank of England nor Chancellor George Osborne, who delivers his budget Wednesday, has much choice but to stay the course.

Inflation hit 4.4% in February, far above the BOE's target ...