LONDON, June 21 (EFECOM). – Year-on-year inflation in the UK was unchanged last May, at 8.7%, the same as in April, but still at “historically high” levels, the office reported Wednesday. For National Statistics (ONS).
According to the agency, the prices of food products and non-alcoholic beverages continue to rise.
Despite the drop, the rate is still above the BoE’s target of 2%.
“After falling last month, the year-on-year inflation rate changed little in May, but remained at record high levels,” said Grant Fitzner, ONS chief economist.
After the data was released, UK Chancellor of the Exchequer Jeremy Hunt told the media that high inflation was “harming” “families and businesses across the country”.
“Our plan to halve the rate this year is the best way to keep costs and interest rates low. We will not waver in our determination to support the Bank of England as it tries to drive inflation out of our economy and, at the same time, provide specific support with the cost of living.”
In a recent update of its forecasts for the UK, the International Monetary Fund (IMF) indicated that the country will avoid recession in 2023 and its economy is expected to maintain “positive growth”.
Lower energy prices are expected to help reduce “annual inflation significantly to around 5% by the end of 2023, and below the 2% target by mid-2025,” according to the IMF. efecom
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