Reported 8 months ago
On June 19, 2024, the UK Office for National Statistics reported that the inflation rate for May decreased to 2%, hitting the Bank of England's target level for the first time in nearly 3 years. Despite this, due to high services inflation and the Bank's cautious approach towards geopolitical factors, the probability of a rate cut in August decreased post-data release, supporting a rise in the pound's exchange rate. The overall data shows a cooling of inflation pressure in the UK, but experts believe that a further decline in the May services inflation rate is necessary for a potential rate cut by the central bank.
Source: YAHOO