UK inflation unexpectedly drops again

The UK's Office for National Statistics (ONS) today (June 19) announced that CPI inflation had fallen to 2.8% in May, down from 3% in April.

In May, the Bank of England released a gloomy Inflation Report, which suggested inflation was expected to remain above the 2% target until the middle of next year, something analysts have contested in light of the latest figures.

"The further fall in inflation in May was a nice surprise given that we and the consensus had expected it to hold broadly steady.