The latest Bank of England news, headlines and analysis from The NE Times.
The Office for National Statistics says the headline rate was unchanged from April, defying forecasts of a rise, as falling grocery prices balanced out the steepest jump in transport costs in more than three years.
Economists are near-unanimous that the Monetary Policy Committee will leave borrowing costs unchanged on Thursday, with Middle East tensions and a looming energy bill rise tempering hopes of further cuts this year.
The Bank of England's Monetary Policy Committee is widely expected to keep interest rates at 3.75% on 18 June, with energy-driven inflation risks dividing the panel and dampening hopes of cuts later this year.
Economists are virtually unanimous that the Monetary Policy Committee will leave borrowing costs unchanged on Thursday, with a Middle East oil-price spike forcing rate-setters into a holding pattern just as households had begun to hope for relief.
The Monetary Policy Committee is widely expected to keep Bank Rate unchanged on 18 June, balancing softer inflation against the threat of higher energy costs from Middle East tensions.
The Bank of England has unveiled an 18-strong shortlist of native British wildlife and invited the public to help choose which species will grace the next series of £5, £10, £20 and £50 notes.