22:00 - 17.06.2026
June 17, Fineko/abc.az. UK inflation unexpectedly held steady in May, signaling that domestic price pressures remain weaker than feared despite ongoing global trade and geopolitical headwinds, even prior to the cooling impact of the US-Iran energy alignment.
According to ABC.AZ, citing the Office for National Statistics (ONS), the Consumer Prices Index (CPI) rose by 2.8% on an annual basis, unchanged from April. Bloomberg economists had forecasted headline inflation to reach 3.0%. On a month-on-month basis, CPI edged up by 0.2%.
Key Economic Indicators & Policy Impact:
Sector Breakdowns: The ONS noted that inflation momentum was primarily capped by a slowdown in food and non-alcoholic beverage prices. However, services inflation—tracked closely as a gauge of domestic underlying pressure—came in hotter than projected at 3,7%.
BoE Interest Rate Outlook: The soft print reinforces a "wait-and-see" approach for the Bank of England (BoE) ahead of Thursday's policy meeting, where markets heavily price the central bank to maintain the benchmark interest rate at 3.75%. Falling global energy inputs have prompted traders to price in just one more rate hike.
July Headwinds: Despite the current respite, a 13% increase in the UK household energy price cap is already locked in for July. According to Bloomberg Economics, this regulatory adjustment is poised to inject an additional 0.4 percentage points into the headline inflation rate.
