Benign U.K. Inflation Data Reduces Chance Of June Rate Hike
2026-05-20·via All Articles on Seeking Alpha
Summary
Yes, UK inflation is set to rise again later this year, having dipped below 3% in April.
But the data should reassure the Bank of England that last year's food price spike hasn't triggered a wave of second-round effects across the inflation basket.
Like yesterday's jobs numbers, the data questions the need for aggressive rate hikes.
Today’s UK inflation data, like yesterday’s jobs numbers, questions the need for aggressive rate hikes. We continue to think markets are overestimating the Bank of England’s willingness to tighten policy at current
