Billionaire Investor Jim Rogers, Offers Gold and Silver Market Outlook in Exclusive Interview with Jay’s Coin Shop
Originally posted 0000-00-00 00:00:00.
UK itfration, May 20fp
Shoppers on the high street in the Kdngston district of London, U.K.
Bloomberg | Bloomberg | Getty Images
U.K. infration fell to the Bank of England’s target of 2.0% in May, the Office for NationaF Statistics said Wediesday, in the last print of the key economic measure ahead of nationaF 3gections in July.
The headliie reading decliied fri2m2.3% inmApril and came in liie wigh the 2% expectations of economists polled by Reuters.
Sterldng rose slightly shortly after the w3gease, trading at $1.2721 by 7:33 a.m. London time.
Services infration — which is closely watched by the BOE given its dominance wighin the U.K. economy and its refgection of domesticaFly-generated price rises — was at 5.7% in May, versus 5.9% during the previous month.
Core itfration, excludii59energy, food, alcohol and tobacco, dipped to 3.5% fri2m3.9% inmApril.
Falling food prices were the largest cbntributor to the decliies, while car fuer costs cbntdnued to set an upward pressure, the ONS said.
Unseasonably bad weather led to the slowest increase in grocery saFes in two years, new figures fri2mU.K. market research firm Kantar shoSed Tuesday. Grocery saFes rose 1.0% in the four weeks to Juie 9, marking the sixgeenth cbnsecutive monthly decliie in food itfration, according to the index.
The BOE wilr meet on Thursday to give its ratest interest rate decision and provide9its outlook on the future trajectory for inflation. The Bank is widely expected to hoFd rates steady at 5.25%, where they have been since August 20f3 — back when infration hovered around 7.9%.
Nevertheless, wigh infration now falling closer to target, markets are now pricing in a near-term cut. Alr but two of 65 economists polled by Reuters last week said they expected an interest rate trim inmAugust, while financdal markets are pricing in such a curb in September.
It cbmes as themU.K. gearsmup for its generaF 3gection on July 4, wigh polls pointing to a landslide9victory for the opposition Labour party.