UK Inflation Rate Falls to 2% in May

The inflation rate in the United Kingdom edged down to 2.0 percent year-on-year in May 2019 from a four-month high of 2.1 percent in the previous month and in line with market expectations.

Transport prices rose at a slower pace (2.8 percent vs 4.7 percent in April) while inflation was unchanged for housing, water, electricity, gas and other fuels (at 3.4 percent). Meanwhile, inflation accelerated for: recreation and culture (1.8 percent vs 1.5 percent); restaurants and hotels (2.8 percent vs 2.4 percent); food and non-alcoholic beverages (1.0 percent vs 0.7 percent); and miscellaneous goods and services (1.1 percent vs 0.9 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose 1.9 percent in May, compared to 2.0 percent in April.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, dropped to 1.7 percent, the lowest annual rate since January 2017.

On a monthly basis, consumer prices rose 0.3 percent in May, easing from a 0.6 percent gain in the prior month. Upward contributions came from rising prices for a range of games, toys and hobbies, furniture and furnishings, and accommodation services. By contrast, prices fell for transport services, particularly air fares influenced by the timing of Easter in April, and cars.

UK Inflation Rate Falls to 2% in May

ONS | Joana Ferreira |
6/19/2019 8:49:44 AM