U.K. Inflation Rate Unchanged in May


U.K. CPI annual inflation stands at 4.5 per cent, unchanged from April. Although unchanged overall, there were significant upward and downward pressures on CPI annual inflation between April and May.

Large downward effects came from:
- Transport, where prices overall, fell by 0.8 per cent between April and May this year compared with a rise of 0.7 per cent between the same two months a year ago. The timing of Easter had a significant impact on changes in travel costs resulting in large downward effects from air transport and sea transport, with a further downward effect from second-hand cars. These were partially offset by upward effects from fuels and lubricants and new cars;
- Furniture, household equipment and maintenance, where prices overall rose by 0.4 per cent between April and May this year compared with a rise of 1.2 per cent a year ago. The largest downward effects came from furniture and furnishings and non-durable household goods, particularly household cleaning products.

Large upward effects came from:
- Food and non-alcoholic beverages, where prices overall rose by 1.3 per cent between April and May this year compared with a fall of 0.1 per cent between the same two months a year ago. The upward effects came from a wide range of product groups, most notably from fruit and meat. Fruit prices rose by 4.7 per cent this year compared with a fall of 0.4 per cent a year ago with the main contribution coming from grapes. Meat prices rose this year but fell a year ago across a variety of items;
- Alcoholic beverages and tobacco, where the upward effects came from wine and beer partially offset by spirits. Prices overall of wine and beer rose this year but fell a year ago, particularly for new world wine and lager. Whisky and vodka prices were the main causes of the downward contribution from spirits;
- Miscellaneous goods and services, where prices overall rose by 0.6 per cent between April and May this year compared with an increase of 0.2 per cent between the same two months ago


TradingEconomics.com, UK Office for National Statistics
6/14/2011 11:04:50 AM