UK Inflation Comes in Below Consensus in May

UK inflation in May came in lower than expected at 2.85%, driven by declines in core goods and food prices. Consequently, Goldman Sachs has lowered its inflation outlook and adjusted its expectations for the upcoming MPC vote.

Key Takeaways

• 1.UK headline CPI inflation was 2.85% in May, a downside surprise relative to the consensus of 3.0%.
• 2.Services inflation rose to 3.66%, while core goods inflation fell notably to 0.70%.
• 3.Goldman Sachs now expects the MPC to vote 8-1 to maintain Bank Rate at 3.75% at the upcoming meeting.

Table of Contents

• KEY NUMBERS:
• MAIN POINTS:
• Disclosure Appendix

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