UK inflation held steady at 2.4% in May, missing analysts estimates of a move higher and further cooling expectations on an interest rate hike from the Bank of England this summer.
The Office for National Statistics reported the Consumer Prices Index remained at 2.4% in May, after falling from 2.5% in April and a year-peak of 3.1% in November 2017, prompting a fall in sterling. The pound fell 0.34% against the US dollar to $1.3326 shortly after the announcement and is also down 0.37% against the euro. According to the Financial Times, economists had expected rising crude oil prices would feed into higher transport costs for consumers, lifting inflation higher. However, the price of recreational and cultural goods did not rise by as much as this time last year, d...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
