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Fall in inflation fails to materialise

UK inflation stays at 8.7% despite hopes of a fall

The UK's inflation rate stayed at 8.7% in May despite hopes of a fall. Âé¶¹Éç Economics editor Faisal Islam joined Nick Robinson and Mishal Husain in the studio to breakdown the inflation figures.

Core inflation – which strips out energy and food costs - is at its highest level in the UK for more than 30 years, increasing the likelihood that the Bank of England will raise rates on Thursday.

The Office for National Statistics’ chief economist explained what’s behind the rise. Karen Ward, from JP Morgan Asset Management, told Mishal Husain there are signs that a wage-price spiral is emerging, which the Bank "has to nip in the bud".

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16 minutes

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