{"text":[[{"start":7,"text":"UK inflation unexpectedly held steady at 2.8 per cent in May, reinforcing expectations that the Bank of England would hold off raising interest rates this week as it assesses the impact of the Middle East conflict on the economy."}],[{"start":21.4,"text":"Wednesday’s figure from the Office for National Statistics was below the 3 per cent predicted by analysts polled by Reuters and in line with April’s figure."}],[{"start":30.7,"text":"The ONS said continued pressure from higher petrol prices and an upswing in airfares had been offset by an easing in food inflation and a fall in the cost of domestic heating oil. "}],[{"start":42.55,"text":"The conflict, which began in late February, sparked a global energy shock as Iran closed the Strait of Hormuz, a key waterway for oil and gas supplies. This week’s deal between the US and Iran to reopen the strait has raised hopes that price pressures will ease in coming months."}],[{"start":60.05,"text":"Rate-setters on the Monetary Policy Committee are expected to hold rates steady at 3.75 per cent on Thursday but have been split on how to respond to the energy crisis, with two members signalling that they could vote for an immediate rise."}],[{"start":75.35,"text":"Paul Dales, chief UK economist at the consultancy Capital Economics, said the figures would “give the Bank of England more confidence that it doesn’t need to raise interest rates tomorrow, or at all”. "}],[{"start":87.14999999999999,"text":"The decline in oil prices triggered by this week’s deal between Washington and Tehran has already encouraged traders to temper their expectations for BoE interest rate rises, with the first quarter-point rise now not fully priced until December."}],[{"start":101.94999999999999,"text":"The pound weakened slightly to $1.342 against the dollar following the release of May’s data."}],[{"start":109.64999999999999,"text":"Services inflation — often seen as a gauge of underlying price pressures in the economy — increased to 3.7 per cent from 3.2 per cent in April, but this was largely owing to more volatile prices for transport services. "}],[{"start":123.39999999999999,"text":"Core inflation, which excludes food and energy, edged up to 2.6 per cent in May from 2.5 per cent in April."}],[{"start":130.35,"text":"The annual rate of price increase eased in almost all categories, including for furniture and other household goods, clothing, restaurants and hotels and other recreation and culture. "}],[{"start":140.95,"text":"Inflation is still likely to rise over the months ahead, as a delayed increase in regulated household energy bills takes effect in July."}],[{"start":149.5,"text":"The ONS noted that airfares for European flights were generally priced three months in advance, meaning the effects of higher jet fuel costs because of the war are not yet reflected in the inflation data. "}],[{"start":160.95,"text":"Rate-setters are also grappling with the chilling effect of the Middle East conflict on economic growth. "}],[{"start":166.54999999999998,"text":"The economy contracted 0.1 per cent in April, official figures showed last week, in the latest sign that growth has lost momentum following a strong start to the year."}],[{"start":176.45,"text":"Luke Bartholomew, deputy chief economist at Aberdeen, said a weak economic backdrop meant that while the BoE would “remain vigilant to the impact of higher household energy bills on broader inflation expectations”, the question could soon be “when the Bank will cut rates again, not hike”. "}],[{"start":192.85,"text":"With additional reporting by Ian Smith"}],[{"start":203.14999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781687422_6328.mp3"}