U.K. CPI fell annually to 3.4% in May from 3.7% in April, above median estimates of 3.5%. On the month, the reading slipped to 0.2% compared with the prior 0.6% and forecasts of 0.4%. Annual Core CPI dropped to 2.9% from 3.1%, in line with market projections.

It is worth noting, inflation rateexceeded the upper bound set by the BoE (3.5%)three times this year.