UK inflation stays at 4.5%

Sterling has fallen back this morning after inflation figures showed ‘no change’ in May at 4.5%.

High inflation has been one of the main arguments for raising UK interest rates, and the Bank of England expects inflation to go up further throughout the summer. This morning’s figures were lower than expected, and coupled with Halifax’s announcement this morning that May house prices were 4.2% lower than a year ago, the Pound has started to lose value again.