- The UK Consumer Price Index (CPI) increased by 2.0% in the 12 months to May 2024.
- The BoE may soon contemplate lowering rates in response to the decelerating inflation.
After almost three years of divergence, inflation in the United Kingdom is again back on track with the BoE’s long-term goal of 2%. There was much conjecture that the Bank of England may decrease interest rates this year in response to falling UK inflation. Additionally, cryptocurrency usage in the UK may skyrocket in the event of a rate decrease, which might lead to price increases.
The UK Consumer Price Index (CPI) increased by 2.0% in the 12 months to May 2024, down from 2.3% in April, according to statistics published on Wednesday. Inflation has not been this low since July 2021.
Lowered Rates Anticipated
Additionally, the statistics revealed that the CPI had a monthly rise of 0.3% in May. Like last month, this one fell short of expectations, coming in at 0.4%. The Office for National Statistics said that food price declines, after rising at the same time previous year, were the main factor bringing the monthly inflation rate down. Additionally, the BoE may soon contemplate lowering interest rates in response to the decelerating inflation in the UK.
Inflation has moderated, which is noteworthy since it reached an all-time high of 11.1% in October 2022 in the United Kingdom. Since December 2021, the Bank of England has raised interest rates on a steady basis. To counteract this spike in inflation, the BoE rates reached a height of 5.25%.
Bitcoin has been in the spotlight since it shows symptoms of continuing its downward trend. Bitcoin briefly hit a five-week low of $64,607 recently, according to CMC statistics. However, it has since recovered slightly and is now trading at $65,108.
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