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Inflation remains flat at 0.3% in May

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UK consumer price inflation remained unchanged at 0.3% in May, according to the Office for National Statistics (ONS).

With the exception of March, when the rate was influenced by the timing of Easter, headline inflation has been 0.3% for every month of 2016 so far, the ONS said.

Rising oil prices pushing up the cost of petrol coupled with eating out at restaurants and the price of smartphone services were the main upward drivers.

This was offset by falls in clothing and food prices.

“Since the beginning of the year, the pound has been markedly weaker, which is also likely to have pushed up prices,” said Maike Currie investment director for personal investing at Fidelity International.

With inflation still some way off the Bank of England’s 2% target, Currie said it is unlikely there will be any change to interest rates at the next Monetary Policy Committee meeting on Thursday.

“Lower for longer will remain the mantra with some expecting the Bank of England to re-enter the Brexit debate this week when it releases its final decision on interest rates before Britain decides its future in the EU,” she said.

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