UK inflation held steady in May

The British Office for National Statistics (ONS) announced inflation data for May.

Consequently, annual inflation remained stable at 8.7 percent in May. The expectation was that inflation would be 8.4 percent.

Core inflation in the UK rose to 7.1 percent in May. Core inflation rose to 6.8 percent in April, the highest level since March 1992.

Food inflation, for its part, was 18.4 percent in May, while service sector inflation rose to 7.4 percent.

Inflation, which was 10.1 percent in March this year, fell to 8.7 percent in April, less than expected. Food inflation in England remained high at 19.1 percent in April.

MEDIUM COMMITMENT

Inflation in the UK reached its highest level in 41 years at 11.1 percent in October 2022.

The Bank of England (BoE), which has been tightening monetary policy since December 2021 to reduce inflation, has raised interest rates 12 times in a row since that date, raising the policy rate to 4.50 percent.

It is assumed that the BoE will raise interest rates by 25 basis points at tomorrow’s Monetary Policy Committee meeting.

British Prime Minister Rishi Sunak has pledged to halve inflation this year, while the BoE’s ultimate goal is to bring inflation to 2 percent and keep it there. (AA)