Simultaneously, he observed that core inflation retains its “discomfortingly resilient” nature, given the rate of wage rises and service sector price growth, which both hover around 6%. The idea that these inflationary pressures will be restrained “and perhaps start to return to levels more consistent with achieving our inflation target” is supported by recent statistical data, according to Pill.
In May, the UK’s consumer prices increased at an annualized pace of 2%. For the first time since July 2021, inflation has finally achieved the Bank of England’s target, down from 2.3% in April.
In May, core inflation, which measures price changes without accounting for the cost of energy, food, drink, or tobacco, was 3.5% annually.
source: ft.com
