Inflation surprise rules out a Bank of England rate hike

Martin Beck, Chief Economist | Economic Consulting and Analysis

Inflation held steady in May, coming in below the Bank of England’s forecast and easing fears of rate rises. While energy costs may push prices up temporarily, weaker pay growth, softer demand and limited business pricing power all point to lower inflation ahead. The BoE should hold rates for now, with a cut likely before the end of the year.