UK inflation dips to 3.4% in May but upside pressures persist

According to data from the Office for National Statistics today (18 June), on a monthly basis CPI rose by 0.2% while core CPI – excluding energy, food, alcohol and tobacco – went up by 3.5% in the 12 months to May, down from 3.8% a month before. But UK services CPI remained elevated at 4.7% compared to May 2024, despite having fallen from 5.4% a month earlier. JP Morgan Asset Management global market analyst Zara Nokes said inflation remains "uncomfortably high", while Royal London's consumer finance expert Sarah Pennells noted that despite the decline in inflation figures, "cost...