The Office for National Statistics published May’s inflation figures this morning, confounding experts in the City again as inflation remained stuck at 8.7%. Core inflation, which hit a 30-year high in April, rose even higher to 7.1%.
George Lagarias, chief economist at Mazars, said: “There’s no way to sugar-coat this, 8.7% is a bad number. Inflation has become entrenched and remains high versus other developed market economies.
UK-focused shares including housebuilders and banks traded lower amid fears over the impact of higher interest rates.
