Headline inflation in the UK has dropped to 2% today, in line with forecasts and now meeting the Bank of England's aim of a stable rate of inflation. Services inflation, despite having decreased 20 basis points, remains high at 5.7%; an area of concern for the Bank of England when considering rate cuts. Thus, interest rates are forecasted to remain constant at 5.25% following tomorrow's MPC meeting. The UK has proven resilient in the aftermath of COVID – sharp monetary tightening is proving effective for controlling the highest price rises since the early 80s. In other areas, such as the eurozone and the US, Inflation has proven persistent, with the European Central Bank recently raising inflation forecasts for this year whilst the US Federal Reserve also raised forecasts for core inflation for the end of the year.
PREV ARTICLE
US Inflation lower than estimates
US Inflation lower than estimates