- Prior +9.0%
- Core CPI +5.9% vs +6.0% y/y expected
- Prior +6.2%
On the month itself, consumer inflation increased by 0.7% and that continues to reaffirm stronger price pressures in general with the annual reading showing a slight uptick compared to April. The only bright spot for households is that core inflation is seen ticking lower but that is just a bit-part respite, all things considered.
There isn't anything here that should distract the BOE from tightening policy further and more persistent inflation pressures will just make narrower the window to raise interest rates as it constricts the economy.
