UK inflation fell to 3.4% in May
Stay informed with free updates
Simply sign up to the UK inflation myFT Digest — delivered directly to your inbox.
UK inflation fell to 3.4 per cent in May, in line with expectations, as the Bank of England seeks evidence that recent price rises are under control.
Wednesday’s reading from the Office for National Statistics matched forecasts in a Reuters poll of analysts and marked a decline from April’s 3.5 per cent figure.
The numbers came a day before a BoE policy meeting at which the central bank is expected to keep its key rate unchanged.
The Monetary Policy Committee last month lowered borrowing costs by a quarter point to 4.25 per cent, but minutes from the meeting revealed sharp divisions among the nine policymakers over the threat from inflation.
The MPC has cut interest rates four times since last summer as it grapples with lacklustre growth and persistent price pressures.
Rate-setters split three ways when they reduced borrowing costs in May, with two pushing for a bigger half-point move and two wanting to keep rates unchanged.
The ONS said after April’s inflation release that its headline reading for the month had been boosted by around 0.1 percentage point because of an error in vehicle excise duty data. It said it would use correct figures in May’s reading.
This is a developing story
