No lower in inflation because it stays at 8.7%

The fee of worth rises has remained 8.7% regardless of expectations of a fall, in response to official figures.

The Office for National Statistics (ONS) introduced the patron worth index measure of inflation stood at 8.7% within the 12 months as much as May, the identical as the speed in April.

The Bank of England has undertaken a programme of interest rate rises to deliver inflation all the way down to 2% and Wednesday’s determine shall be carefully watched by rate-setters forward of the newest anticipated rise on Thursday.

Inflation started to extend in late 2021, when supply chain problems linked to COVID lockdowns and the related employee shortages meant demand for items couldn’t be met.

Russia’s invasion of Ukraine exacerbated the issue as many international locations, notably these in Europe, scrambled to search out different vitality sources and scale back their use of Russian fuel, which subsequently pushed up the price of vitality and plenty of different items.