Inflation Level Puts Interest Rate Cut in Doubt

Summary


City markets scaled back their expectations of an early interest rate cut yesterday after news that year-on-year inflation last month remained just a whisker short of Chancellor Gordon Brown's two per cent inflation target for a third month.

A 0.35 per cent increase in the consumer prices index between April and May, driven chiefly by food prices, held the 12-month rise at 1.9 per cent.

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Inflation Level Puts Interest Rate Cut in Doubt

That contrasted with a much more muted performance from the familiar retail prices index, which is still used as a ...

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