UK inflation disappointed the Bank of England (BOE) again with the figure remaining higher than expected in May.
The latest data from the Office for National Statistics (ONS) reported that the UK consumer price index (CPI) was unchanged at 8.7% year-on-year last month as recorded in the previous month.
However, it missed market expectations for a lower decline to 8.4%.
Core inflation (excluding food and energy) unexpectedly rose to 7.1% year-on-year from 6.8%.
This once again puts pressure on the Bank of England (BOE) which continues to struggle in the fight against inflation by raising interest rates.
Investors are now reinforcing expectations for a 25 basis point increase in interest rates at the BOE policy meeting tomorrow (Thursday).
Meanwhile in a separate report, the ONS revealed that government debt rose above 100% of gross domestic product (GDP) for the first time since 1961.
Public sector net debt, excluding state-controlled banks, reached 2.567 trillion pounds ($3.28 trillion), equivalent to 100.1% of gross domestic product.
