		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p>According to Reuters </p>
<p>British inflation defied predictions of a slowdown and held at 8.7% in May, putting yet more pressure on the Bank of England a day before it is expected to raise interest rates for the 13th time in a row to tame stubborn price growth.</p>
<p>Markets increased their bets on further rate rises following Wednesday&#8217;s official figures, which also showed underlying inflation rose to its highest since 1992 last month.</p>
<p>The headline figure means British inflation is once again the fastest of any major advanced economy. The numbers are uncomfortable for Prime Minister Rishi Sunak &#8211; who has pledged to halve inflation over the course of this year before a probable 2024 election &#8211; and are likely to add to the rise in mortgage costs for millions of homeowners.</p>
<p>Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 8.4% in May, moving further away from October&#8217;s 41-year high of 11.1%.</p>
<p>&#8220;May&#8217;s CPI figures ratchet up the pressure on the Monetary Policy Committee to increase Bank Rate substantially further over the coming months,&#8221; Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said.</p>
<p>Sterling briefly jumped against the U.S. dollar and the euro after the figures were released and two-year government bond yields &#8211; which are sensitive to interest rate expectations &#8211; rose to their highest since July 2008.</p>
<p>Markets now see a 40% chance that the BoE will raise interest rates by half a percentage point to 5% on Thursday, rather than the quarter-point move previously expected. They see a 60% chance of rates reaching 6% by December.</p>
<p>&#8220;Today&#8217;s figures strengthen the case for the government to stick to its guns,&#8221; finance minister Jeremy Hunt told reporters.</p>
<p>&#8220;If you look at what&#8217;s happening in other countries, you can see that rises in interest rates do bring down inflation over time, that will happen here,&#8221; he added.</p>
<p>Hunt&#8217;s counterpart in the opposition Labour Party, Rachel Reeves, said Labour would have &#8220;a relentless focus on the cost of living&#8221; if it was in power.</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-68ed1536adf77">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-68ed1536adf77',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
