UK inflation remained stuck at 8.7 per cent in May, much worse than expectations of a drop to 8.4 per cent.
The figures will reinforce expectations of multiple interest rate rises from the Bank of England, starting on Thursday with a rise of at least 0.25 percentage points from 4.5 per cent to 4.75 per cent.
Core inflation, which excludes volatile food and energy prices, rose again in May to 7.1 per cent from 6.8 per cent the previous month.
The pound strengthened as much as 0.3 per cent against the dollar after the news, to $1.28. Sterling also rose 0.3 per cent against the euro to €1.1720.
This is a developing story.
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