UK inflation stays at 8.7% despite hopes of a fall - BBC News

UK inflation unchanged at 8.7% in year to May despite expectations it would fall as cost of living remains high Follow live ⬇️

Strip out food and energy - the volatile bits impacted by global commodities - and so-called “core” inflation is at its highest level in the UK for more than 30 years. Services inflation is also on the rise.

It’s those figures the Bank of England watches when it’s looking for signs of overheating demand that it reckons it can squeeze - via higher interest rates - to bring inflation down. So today's figures will heighten expectations of rate rises for longer, with knock-on effects for mortgages. The cost of living crisis is threatening an acute cost of borrowing crisis.

The figures mean inflation overall remains higher and more stubborn in the UK than in the US and EU - as the UK has felt the full force of both the impact of the war in Ukraine on prices of commodities and labour shortages.

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