Services inflation of 5.7% raises concerns about economy's underlying price pressures, making August rate cut less likely.
Despite inflation expected to fall below 2% in June, Bank may hesitate to cut rates due to elevated services-price inflation.
Bank has room for rate cuts as inflation likely to average slightly above 2% this year, with a base case of year-end rates at 4.5%.
Political considerations ahead of July's poll may influence Bank of England's decision on interest rates.
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