In May, inflation in the United Kingdom kept to one year minimum, further decreasing the likelihood of a rate lift by the Bank of England in the nearer months.
According to the Office for National Statistics, in May, the annual rate of inflation in Great Britain managed to ascend by up to 2.4%, staying intact from the previous month that turned out to be a one year minimum and in line with hopes.
Soaring motor fuel prices made the greatest upward contribution to the country’s inflation, as the ONS pointed out.
In addition to this, there were also huge upward effects from air as well as sea fares that rallied between April and May in 2018, although inched down between the same two months in 2017 because of the timing of Easter.
Year-on-year underlying inflation headed north by nearly 2.1%, generally matching the previous month and being in line with estimates.
In May, consumer prices tacked on about 0.4%, being intact from the previous month and in line with estimates.
The inflation figures happened to be were the latest sign that a cost of living squeeze in Great Britain is receding, even after Tuesday’s data disclosing that wage surge speeded down a bit for the three months to April.
The abrupt dive of the UK currency in the wake of the June 2017 Brexit referendum spurred the cost of imports, causing a jump in inflation. Besides this, it has rebounded from its November maximum of 3.1%. What’s more – it’s still running above the Bank of England’s objective of about 2%.
With inflation rebounding towards the BoE’s objective and economic and wage surge cooling markets are taking the view that a rate lift by the country’s key bank in the nearer months is getting increasingly less likely.
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