From Morningstar: 2024-05-17 09:23:00

UK inflation is forecast to rise by 2.7% for the Consumer Price Index (CPI) in May. Core inflation is expected to fall to 3.7%. A recent report by Resolution Foundation highlights the impact of the inflation surge on consumers, forcing them to cut spending.

Despite a recent drop in CPI to 3.2%, it is expected to approach the 2% target and possibly fall lower. The Bank of England is closely monitoring inflation numbers to decide on potential interest rate cuts, with a 60% probability of a cut in June.

The Bank of England recently held interest rates at 5.25%, but signs indicate a potential cut in the future. Inflation is projected to return close to the 2% target, but there are risks that could push it upwards. Geopolitical factors could impact near-term inflation outlook.



Read more at Morningstar: UK Inflation: What to Expect from April’s Data