UK inflation slowed to 3.4% in May
Bank of England is seeking evidence that recent price rises are under control
Bank of England is seeking evidence that recent price rises are under control

Trade war fuels price pressures ahead of Federal Reserve meeting next week

Decision follows data showing UK inflation remains stubbornly above target

Data increases odds of a BoE rate reduction as soon as next month

Figure comes as Middle East war has triggered a surge in energy prices

Figure prompts traders to increase bets on Bank of England interest rate cut this year and sparks gilt rally

Expansion of 0.3% marks a sharp slowdown from 0.7% in first three months of the year