UK inflation rate

2024 - 5 - 23

UK Inflation Rollercoaster: Surprise Drop but June Rate Cut Uncertain

Bank of England - Inflation - Interest rates - UK economy

The UK inflation rate took a dip, sparking uncertainty about a potential rate cut in June. Dive into the surprising details now!

The UK inflation rate took a rollercoaster ride, dropping to 2.3% in April from 3.2% the previous month. While this decrease was welcomed by economists, it wasn't as sharp as predicted, leading to doubts about a June rate cut by the Bank of England. The service sector, closely monitored by the Bank, saw minimal change in its inflation rates, adding complexity to the current economic scenario.

Despite the overall decline in inflation, the hopes for a June rate cut have been overshadowed by the persistently strong service sector inflation. Investors are reevaluating their bets on the Bank of England's next move as the key core measure of prices remains relatively stable. The UK's inflation pressure seems to be holding strong, signaling a potential hinderance to the anticipated rate cut.

In a twist of events, the UK inflation rate, hitting the lowest point in almost three years, has created a wave of speculation. Economists are now debating the likelihood of a summer rate cut, with differing opinions on the necessity of monetary policy adjustments. The uncertain economic landscape post-inflation drop adds a layer of complexity to the Bank of England's future decisions.

In conclusion, the recent fluctuations in the UK inflation rate have injected uncertainty into the financial market. The discrepancy between expectations and actual figures has left analysts and investors on edge, awaiting further economic indicators to gauge the direction of monetary policy. The nuanced dynamics of service sector inflation and core price measures continue to influence the debate surrounding interest rates and the Bank of England's next steps.

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Image courtesy of "The Guardian"

Big drop in UK inflation rate disguises more disappointing details (The Guardian)

Service sector inflation, monitored closely by Bank of England, barely budged in April.

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Image courtesy of "BBC News"

UK inflation rate falls to lowest in almost three years (BBC News)

Prices rose at 2.3% in the year to April, down from 3.2% the month before, official figures said.

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Image courtesy of "Morningstar"

UK Inflation Weakens Case for June Rate Cut (Morningstar)

Economists welcome fall in inflation to 2.3% but argue the Bank of England will be less likely to cut interest rates in June.

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Image courtesy of "Financial Times"

UK rate cut hopes dented after inflation falls less than expected (Financial Times)

UK inflation dropped less than forecast to 2.3 per cent in April, in a blow to hopes that the Bank of England would be ready to cut interest rates as soon ...

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Image courtesy of "Euronews"

UK inflation slows less than predicted: Is a summer rate cut now in ... (Euronews)

UK inflation slowed to 2.3% in April 2024, the lowest since July 2021, down from 3.2% in March, but missed the predicted drop to 2.1%. Core inflation ...

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Image courtesy of "Business Post"

UK inflation reaction: drop not sharp enough for a June interest rate cut (Business Post)

The new data shows a sharp drop in inflation but at the higher end of economists' predictions.

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Image courtesy of "The National"

UK inflation rate falls to 2.3 per cent in April (The National)

With service sector inflation remaining persistently strong, hopes for June cut to interest rates have faded.

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Image courtesy of "Reuters"

UK inflation pressure stays hot, dashing hopes for June rate cut (Reuters)

Inflation in Britain eased less than expected and a key core measure of prices barely dropped, prompting investors to pull bets on a Bank of England rate ...

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Image courtesy of "The New York Times"

U.K. Inflation Falls to 2.3%, Lowest in 3 Years (The New York Times)

The decline, which was less than economists expected, is nearing the Bank of England's 2 percent target.

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Image courtesy of "Sky News"

The government is taking credit for the inflation rate fall - should it? (Sky News)

There's evidence to suggest that government action has acted to bring up price rises rather than lower them. It's retailers and the Bank of England who ...

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Image courtesy of "BBC News"

UK inflation: How does the UK compare with other economies? (BBC News)

Chancellor Jeremy Hunt compared the UK economy with other countries. We've checked some of his claims.

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Image courtesy of "Irish Farmers Journal"

UK inflation rate fall is good news (Irish Farmers Journal)

Irish farmers and agri-food exporters will join UK consumers in welcoming a further fall in UK inflation this week. As Figure 1 shows, overall inflation has ...

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