UK May CPI in line with market expectations

UK May consumer price index (CPI) rose by 0.7% month-on-month and 9.1% year-on-year respectively, while the previous value was up 2.5% and 9% respectively, both of which were in line with market expectations. During the period, the core CPI, excluding food and energy, rose by 5.9% year-on-year, a slowdown from the previous 6.2%, reflecting those local inflationary pressures were mainly driven by energy and food. However, due to factors such as high property prices and substantial price hikes for utilities, local housing and transportation remained high, accelerating to 19.2% and 13.8% year-on-year, respectively. Inflation in the United Kingdom has continued to hit a nearly 40-year high, and the Bank of England is expected to reach as high as 11%, exacerbating market concerns about the risk of "stagflation" in the economy, and is expected to continue to trouble the pound.