UK Core CPI Soars to 30-Year High Despite Drop in Fuel Prices

Core CPI in the UK spiked to a 30-year high in May, with a month-to-month increase of 0.8% and a year-over-year increase of 7.1%. Services CPI rose by 0.8% in May, with inflation in services notoriously hard to stamp out. Food inflation also remains high, with a 0.9% increase in May. The one-year UK government bond yield rose by 12 basis points to 5.20%, the highest since 2008, as it begins to price in higher BOE policy rates than previously expected.