The latest flash PMI numbers indicate a rare economic scenario where higher growth coincides with lower inflation, marking an economic sweet spot for the UK economy.
With input costs rising at the slowest pace since January 2021 and private sector output at its fastest since April, the current economic conditions are favorable.
If services inflation drops further as anticipated, it could defy the Bank of England's expectations, possibly leading to a rate cut in September.
The PMI surveys have effectively predicted declines in services inflation, and if this trend continues, it could signal a shift in monetary policy.
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