recasts with economic activity data updates with mortgage help uk privatesector growth has slowed to a threemonth low as soaring interest rates and stubbornly high inflation fuelled by rising food prices worsens a costofliving crisis data showed friday it comes as the uk government announced help for homeowners after seeing mortgage costs surge in the wake of rising interest rates figures on friday highlighted britains economic struggles heaping more pressure on prime minister rishi sunak the closelyfollowed sp globalcips flash uk purchasing managers index declined to 528 in june from 54 in may a reading above 50 indicates growth junes flash pmi survey indicates that the uk economy has lost momentum again after a brief growth spurt in the spring and looks set to weaken further in the months ahead chris williamson chief business economist at sp global market intelligence said in a statement most notably consumer spending on services which was a core growth driver in the spring is now showing signs of faltering williamson said this was as the reality of higher interest rates the increased costofliving and gloom about the outlook sets in and overrides the brief boost to spending official data this week showed uk annual inflation at 87 percent in may unchanged from april causing the bank of england boe on thursday to hike its key interest rate by a largerthanexpected amount the halfpoint lift to a 15year peak of five percent was the 13th increase in a row economists are predicting rates could hit six percent this year which could see the uk follow the eurozone into recession separate data friday showed uk retail sales growth slowed in may as soaring food prices hit shoppers hard total retail sales by volume rose 03 percent after climbing 05 percent in april the office for national statistics said in a statement food stores sales dropped 05 percent in may with retailers indicating that increased costofliving and food prices continued to affect sales volumes the ons added shops were impacted also by some anecdotal evidence of increased spending on takeaways and fast food owing to an extra public holiday last month for the coronation of king charles iii overall sales climbed thanks to cheaper fuel and demand for summer clothing and outdoor goods the ons noted annual food price inflation was close to a recordhigh of 184 percent in may official uk data showed this week the uk housing market was also in sharp focus finance minister jeremy hunt on friday agreed support measures with major uk mortgage lenders for struggling customers including those in arrears millions of britons who have home loans are particularly affected by the boe rate hikes which tend to be mirrored by commercial lenders on food sunak thursday acknowledged that households weekly shopping bills had gone up far too much in the past few months were looking at the supermarkets making sure that theyre behaving responsibly and fairly when it comes to pricing all those products to make sure that were easing the burdens he added