UK inflation cools to 3.4% in May as Bank of England holds rates

"Despite inflation edging down slightly to 3.4% in May, it remains well above the Bank of England's target, indicating persistent price pressures."

"The fall in core inflation, from 3.8% to 3.5%, suggests underlying pressures are easing, providing some respite for policymakers."

In May, UK inflation decreased to 3.4%, down from 3.5% in April, hinting that price pressures in the economy might be easing. Core inflation also saw a decline, dropping to 3.5%, providing positive signs for policymakers. However, inflation continues to exceed the Bank of England's target of 2%. Although services inflation slightly decreased, the Bank is likely to maintain interest rates at 4.25% as it monitors further evidence of sustained inflation reduction. Rising food prices and expenses in household appliances slightly countered the overall downward trend in inflation.

Read at Business Matters