Aberdeen: UK has not yet overcome its inflation problems

Aberdeen: UK has not yet overcome its inflation problems

20 mei 2026

Inflatie Verenigd Koninkrijk

Luke Bartholomew, Deputy Chief Economist at Aberdeen, comments on the UK inflation figures released this morning:

'Inflation coming in softer than expected today will further take the pressure off the Bank of England to hike rates over the next few meetings. But we are most certainly not out of the woods in terms of the impact of the Iran conflict on inflation.

Ironically, this is probably the month inflation would have been back at the 2% target were it not for the Iran war. Instead, headline inflation will pick-up again in coming months, especially after the next energy price cap re-set in July.

So as inflation climbs back towards 3.5% later this year, the question of interest rate hikes will remain pressing. But on balance, we think the weakness of the economy, and the labour market in particular, will stay the Bank’s hand, with rates remaining on hold even as inflation pressures remain elevated.'

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