Finance
UK services inflation is proving sticky, BoE's Lombardelli says
Published by Global Banking & Finance Review®
Posted on June 19, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 19, 2025
1 min readLast updated: January 23, 2026
UK services inflation remains sticky despite a slight fall in May, says BoE's Lombardelli. The Bank of England keeps interest rates at 4.25% amid expected labour market slowdown.
LONDON (Reuters) -Bank of England Deputy Governor Clare Lombardelli said on Thursday that British services price inflation - a key measure of domestic price pressures - remained "sticky" despite data showing a slight fall in May.
Lombardelli, who was speaking after the central bank kept interest rates at 4.25% in a 6-3 vote split earlier on Thursday, also said the slowdown in Britain's labour market was as expected.
"We've seen a rise in a number of elements of inflation. Services inflation is proving to be quite sticky, but we've also seen recent rises in energy prices, other regulated prices," Lombardelli told reporters.
"We are seeing some broad weakening in the labour market. I mean, this is in line with what we expected, and actually quite similar to what we set out in our latest Monetary Policy Report in May, but it's important that we consider those changes," she added.
Figures published on Wednesday showed British inflation fell to 3.4% in annual terms in May, and service price inflation cooled more than expected to 4.7% from 5.4% in April.
(Reporting by Suban Abdulla; editing by David Milliken and Andy Bruce)
Clare Lombardelli indicated that British services price inflation remains 'sticky' despite some fluctuations in other inflation elements.
The Bank of England decided to keep interest rates at 4.25% in a 6-3 vote split.
Lombardelli noted a broad weakening in the labour market, which aligns with the expectations set out in their latest Monetary Policy Report.
Figures showed that British inflation fell to 3.4% annually in May, with service price inflation cooling to 4.7% from 5.4% in April.
Lombardelli pointed to recent rises in energy prices and other regulated prices as contributing factors to the inflation trends.
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