UK inflation remained at 8.7%, higher than expected

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Traders are now betting that UK interest rates will peak at 6 per cent early next year. Analysts said there was almost no good news in the inflation data. Core inflation, which excludes volatile food and energy prices, rose again in May to 7.1% from 6.8% the previous month, the highest rate since March 1992. Services prices They also rose 7.4%, also the highest rate in more than 30 years. Recommended The monthly increase in overall prices of 0.7 percent in May alone suggests that the current rate of price increases is not slowing. Paul Dales, chief UK economist at Capital Economics, said the BoE would have to “fight harder” to reduce inflation because “accelerating core inflation is making the UK increasingly look like the global outlier and the stagflation. Kitty Ussher, chief economist at the Institute of Directors, said the only question for the BoE now was how much to raise the cost of borrowing.

He said the failure to reduce inflation was probably caused by "the continued impact of high energy costs and strong wage pressure being transmitted to prices, all overlaid with high demand for leisure activities Russia Mobile Number List among households with disposable income. You are viewing a snapshot of an interactive chart. This is most likely because you are offline or JavaScript is disabled in your browser. In the details of the figures, the price increases again easily offset the price cuts with significant increases in the cost of airfares, vacation packages, live music events, games and toys. These were partially offset by falling gasoline and diesel prices. Food price inflation fell from 19% in April to 18.3% in May, but the cost of food in supermarkets rose 0.9% in the month of May alone. The UK's inflation rate of 8.7 per cent in May compares poorly with other countries.



The equivalent figures are 6% in France, 6.3% in Germany,across the EU and 2.7% in the US, using the most comparable measure.The request by the Vice President of Economic Affairs, Nadia Calviño, for banks to compensate liabilities has so far fallen on deaf ears. At least with regard to two of the four large Spanish banks (CaixaBank and Sabadell) that this Tuesday made the decision subject to what the market demands. At the seminar of the Association of Economic Information Journalists (APIE) of the Menéndez Pelayo International University, in Santander, the president of CaixaBank, José Ignacio Goirigolzarri, assured that in terms of deposits "what happens in the future will be what it says the client, who assured that they will adapt to the demands of the market, although, in any case, he made it clear that "those who have to make decisions regarding pricing policies are the banks.