June 2023 Market Update – UK rates could rise further in face of stubborn inflation

In contrast to persistently high inflation rates in the UK, the pace of price rises slowed substantially in
the US, which encouraged stock markets higher in May.

Bond markets were unsettled in May after higher-than-expected
inflation figures raised fears the Bank of England would have to
continue raising interest rates. Britain’s inflation rate is starting to ease,
falling from 10.1% in March to 8.7% in April, but not by as much as
economists were hoping. One reason is that food prices are still rising
at their highest rate in nearly 45 years