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British inflation stays stable amid Iran tensions

British inflation stays stable amid Iran tensions

The inflation rate in the United Kingdom remained steady at 2.8% in May, unchanged from April, and was lower than the expected increase to 3%. The decline in food costs and fluctuations in airfares contributed to containing inflation, while services inflation rose to 3.7%. These figures support the Bank of England’s accommodative policy stance, with reduced expectations of interest rate hikes following a drop in energy prices and forecasts that inflation will return to the bank’s 2% target next year.

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