UK CPI Hikes Are Not On The Table

UK inflation data for May came in lower than expected at 2.8%, contradicting fears of a renewed inflation bout. TS Lombard maintains that the Bank of England will not raise rates this year as inflation pressures continue to moderate.

Key Takeaways

• 1.UK May CPI held at 2.8%, lower than expectations of 3.0%, suggesting inflation pressures are not building up.
• 2.The Bank of England is likely to maintain current rates, as the 'Scenario A' path of fading energy shocks and cooling wage pressure gains traction.

Table of Contents

• UK CPI: HIKES ARE NOT ON THE TABLE
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