Core Viewpoint - The recent UK inflation data has diminished hopes for a rate cut by the Bank of England in June, but there remains a possibility for a cut in August due to weakening pricing power [1] Inflation Data Summary - April CPI increased by 3.5% year-on-year, up from 2.6% in March [1] - Service sector inflation rose significantly from 4.7% to 5.4%, which is a larger rebound than anticipated by the Bank of England [1] - Some of the inflation increase is attributed to road tax and the Easter period, which the Bank may overlook [1] Future Outlook - It is expected that the service sector inflation rate will decline to 4.5% during the summer, potentially allowing for a rate cut in August [1]