UK - UK Inflation Hits 2% Target For First Time In 3 Years But It Is 'Unlikely To Convince' Central Bank To Cut Rates Just Yet Says Mohamed El-Erian | Benzinga
The UK’s inflation rate has finally hit the Bank of England’s target of 2%, marking the first time in nearly three years. However, this development may not be enough to prompt immediate rate cuts, according to a prominent economist.
What Happened: The Consumer Prices Index rose by 2% in May compared to the previous year, as reported by the Office for National Statistics on Wednesday. This figure aligns with the expectations of economists, noted Mohamed El-Erian, the chief economic adviser at Allianz.
“The 2% figure is unlikely to convince the central bank to cut rates tomorrow given a number of issues, and not just because core inflation is still high at 3.5% due to sticky services price increases (5.7% for May),” El-Erian wrote on X.
In line with the consensus forecast, #UK inflation for May ...