STORY
UK inflation remained at 2.8 per cent in May, according to official figures released ahead of the Bank of England’s latest interest rate decision. The rate was unchanged from April and remained above the Bank’s 2 per cent target, although it was lower than some forecasts had expected.
The figures showed food and energy-related movements offsetting other price pressures, with services inflation remaining a particular focus for policymakers. Financial markets responded to the data by reassessing expectations for the future path of interest rates.
The Government has said reducing inflation and improving living standards remain central economic priorities. The Bank of England will consider the figures alongside wage growth, services prices and broader economic conditions when setting interest rates.