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UK inflation falls to 3.4%, complicating Bank of England’s interest rate task

Annual drop in May but policymakers still almost certain to hold rates at 4.25% on ThursdayBusiness live – latest updatesInflation in the UK eased to 3.4% last month after rises in the cost of food and furniture were offset by a steep fall in air fares and petrol prices.May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%. Continue reading...

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