Inflation & Prices
UK’s Stubborn Services Inflation Complicates BOE Rate Cut
- Economists only expect small decline in services CPI to 5.6%
- Traders see a 45% chance that BOE will loosen policy in August
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Britain’s services sector and jobs market are likely to show lingering signs of strong inflation this week, a warning sign that may prompt the Bank of England to hold off on cutting interest rates in August.
Official data due Wednesday is expected to show services inflation ticked down to 5.6% in June from 5.7% the month before, a survey of economists showed. A day later regular pay growth is predicted to cool below 6% for the first time in 20 months in figures covering the three months to May.