- CPI +0.2% vs +0.4% m/m expected
- Prior +0.7%
- CPI +2.8% vs +3.0% y/y expected
- Prior +2.8%
- Core CPI +0.3% vs +0.4% m/m expected
- Prior +0.7%
- Core CPI +2.6% vs +2.7% y/y expected
- Prior +2.5%
The headline estimates were softer than expected but when viewed as a whole, UK inflation developments were little changed from April to May.
The monthly figures for both headline and core prices continued to nudge higher, although less than estimated. Meanwhile, headline annual inflation while being a miss was still the same as it was in April at 2.8%. As for core annual inflation, that is seen nudging just a little higher to 2.6% in May.
Transport prices (+6.8%) were the biggest positive contributor to the annual rate of inflation, with higher fuel prices the main culprit. The annual rate here was the highest since December 2022 with motor fuel prices being up 24.6% while airfares rebounded to be up 0.9% after a decline of 13.2% in April.
Looking at the other details, food price inflation also eased in May as it dropped to 2.2% from 3.0% in April. But when looking to core prices, services inflation remains the key sticking point with it rising to 3.7% in May from 3.2% in April. That offsets the drop in goods inflation, which fell to 2.0% in May from 2.4% in April.
This article was written by Justin Low at investinglive.com.
