UK’s Inflation Rate Declines to 2% in May
Britain’s annual inflation rate declined to 2% in May from 2.3% in April, according to data from the Office for National Statistics published Wednesday.
The latest reading is consistent with the consensus estimate, and appears to be the lowest since Russia-Ukraine war started, pushing energy prices higher with negative impacts on consumer inflation.
On a monthly basis, consumer prices grew 0.3%, according to statistics office, though stable when compared with the previous month and lower than the consensus estimate of a 0.4% increase.
UK’s annual core inflation rate fell to 3.5% from 3.9%, also matching the analyst forecast. Month over month, core consumer prices were up 0.5%, compared with the previous 0.9% rise.
Consumer prices were 2.0% higher than the same month of 2023, cooler than the 2.3% recorded in April, and marking the fourth fall in as many months, the Office for National Statistics said Wednesday.
It is the first time inflation has reached Bank of England’s 2% target since July 2021. # UK’s Inflation Rate Declines to 2% in May Oil Prices Fall over Surprise Build in US Inventories