Potato buns grown in the UK at D&F McCarthy Ltd in Norwich, UK on Tuesday, February 28, 2023. Photographer: Chris Ratcliffe/Bloomberg by Getty Images
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The UK’s annual inflation rate was expected to reach 3.4% in May, according to data released by the Office for National Statistics (ONS) on Wednesday.
Core inflation did not include more volatile energy, food, alcohol and tobacco prices, and as of May, the core inflation rate rose 3.5%, down from 3.8% in the twelve months to April.
The Bank of England is closely following inflation data as it tries to determine the best interest rate course for stubborn inflation rates and under-growth.
Central banks are expected to keep interest rates stable at their next meeting on Thursday and pay attention to inflationary pressures. Economists expect policy makers to lower interest rates by 25 basis points at their next gathering in August.
The Bank of England said earlier this year that it expects inflation to rise to 3.7% in the third quarter before starting to cool down until next year.
The trend may be emerging last month, with inflation rising to 3.4% as energy and household costs rise.
ONS initially released data showed a 3.5% increase, but later on The incorrect estimate of the auto tax data has led to the overstatement of the print.
This breaking news report is being updated.
