The Bank of England is under huge pressure to hike interest rates even further and faster than previously thought, amid fears the economy could slip into a “wage-price spiral” otherwise.
Inflation didn’t budge in May, remaining at 8.7% despite supermarkets boasting of price cuts for certain food products. Core inflation, which strips out food and energy prices to create a less volatile picture of domestic inflation, rose from what was already a 30-year high to hit 7.1%.
