As we've been discussing, today's inflation data could set back interest rate cuts - with the Bank of England having stated it needs evidence inflation can hit and stay at the 2% target before it acts.Headline inflation is now within touching distance of the target - but 2.3% wasn't as low as expected and core inflation, which strips out the volatile elements, is still at 3.9%.
He said today's data would have been a 'blow' for the Bank of England and Rishi Sunak, despite inflation being closer to the 2% target than it has been for three years.He pointed out that restaurant and hotel inflation rose from 5.8% to 6%, while cultural services inflation rose from 5.4% to 8.3%.'Even though there is still a wages and a CPI release to go before the Bank of England meeting on 20 June, it feels as though a cut then now seems very unlikely,' Mr Dales said.
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