• Financial Survival Network
  • Posts
  • Inflation Shocker in the UK: Core CPI Spikes to 30-Year High, Driven by Spike in Services, Even as Motor Fuel Prices Plunge

Inflation Shocker in the UK: Core CPI Spikes to 30-Year High, Driven by Spike in Services, Even as Motor Fuel Prices Plunge

June 22, 2023

by Wolf Richter Wolf Street

Bond yields jump as they begin to price in more BOE rate hikes, and higher for longer than previously imagined.

Inflation is infamous for its head-fakes and has a tendency to dish out one nasty surprise after another – at least for observers that keep expecting that inflation will somehow go down on its own. Today, the inflation shocker occurred in the UK. And this is a warning for all economies: inflation has gotten solidly entrenched in services, and is getting even worse.

Core CPI spiked month-to-month by a scary 0.8% in May, which translates into an annualized spike of 10%, according to data from the UK Office of National Statistics (ONS) today.