Former finance minister Rishi Sunak, one of two candidates vying to be Britain's next prime minister, said the country's next government must deal with inflation rather than risk exacerbating it.

"The Bank has acted today and it is imperative that any future government grips inflation, not exacerbates it," Sunak said in a statement responding to the Bank of England's move to hike rates by half a percentage point to 1.75%. (Reporting by Muvija M and William James; Editing by Kate Holton)