UK Core Inflation Rate Slows More than Expected

The United Kingdom's annual core inflation rate eased to 3.5% in May 2025 from a one-year high of 3.8% in the previous month, slightly below market forecasts of 3.6%.

The slowdown was mainly driven by a slowdown in the CPI services rate (4.7% vs 5.4% in April), as the CPI goods rate accelerated (2.0% vs 1.7%).

On a monthly basis, core consumer prices rose by 0.2%, in line with estimates and sharply down from April’s 1.4% surge.

It was also the softest monthly increase in four months, suggesting some easing in underlying inflation pressures.