Britain’s annual inflation rate remained at 2.8% in May, above the Bank of England’s 2% target for the third consecutive month.
The UK’s annual Consumer Price Index held steady at 2.8% in May, matching April’s print, according to official data released Wednesday. The reading defied expectations of a slight decline and remained well above the Bank of England’s 2% inflation target.
Prior to May, inflation had eased from 3.2% in March to 2.8% in April, following a peak of 11.1% in October 2022. Analysts had anticipated a modest dip in May, but persistent price pressures in services and energy kept the rate elevated.
The pound showed limited reaction in early trading, as markets await further signals on the BoE’s next policy move amid sticky inflation.