• The UK Office for National Statistics will publish the May CPI report on Wednesday.
• UK inflation is expected to cool down, falling back to the BoE´s target.
• The Bank of England will announce its decision on monetary policy on Thursday.
• The Pound Sterling is expected to post a wild reaction to inflation data.

The United Kingdom’s (UK) Office for National Statistics (ONS) will release the May Consumer Price Index (CPI) report on Wednesday at 06:00 GMT. At the same time, the ONS will publish the Producer Price Index (PPI) figures for the same period. 

Inflation in the United Kingdom remains above the Bank of England’s (BoE) 2% target. According to the latest data, the UK CPI grew by 2.3% year-over-year (YoY), while core annual inflation posted 3.9% in April. Market participants expect the CPI to have risen 2% YoY in May, matching the BoE’s goal for the first time in roughly three years.