UK consumers received a much-needed relief in May as petrol prices dropped, helping to ease inflation to 3.4% last month. The decline in the consumer prices index (CPI) was primarily due to a steep fall in air fares and petrol prices, which offset the increases in the cost of food and furniture.
According to the Office for National Statistics (ONS), its measure of core inflation, which excludes volatile items such as energy, food, and alcohol, rose by 3.5% in the last year, down from 3.8%. City economists had correctly predicted the fall in CPI in May to 3.4%, with the Bank of England's target at 2%.
Services inflation, which has been high in recent years, began to slow more rapidly, down from 5.4% to 4.7%. Despite this, the Bank of England has resisted making steep cuts to interest rates while services inflation remains sticky. However, recent data showing a slowdown in the economy has increased pressure on the central bank to cut the cost of borrowing. Wages growth fell and unemployment increased in the February to April quarter, while the economy shrank in April.
Monica George Michail, an associate economist at the National Institute of Economic and Social Research, said that inflation is likely to remain above 3% for the rest of the year due to persistent wage growth and the inflationary effects from higher government spending. She added that the current tensions in the Middle East are causing greater economic uncertainty and expects the Bank of England to keep interest rates on hold this Thursday and implement just one further cut this year.
Earlier this month, the ONS overestimated its CPI reading for April by about 0.1 percentage point due to an error that exaggerated the effect of higher car tax bills. The original reading was left as the official figure for that month, but the ONS said it would use correctly weighted data in future calculations.
Overall, while the decline in petrol prices brought some relief to consumers, inflationary pressures remain high and the Bank of England will likely continue to monitor developments closely before making any further interest rate cuts.
The latest UK inflation data, showing an easing to 3.4%, is a welcome relief amidst the falling fuel and airfare prices that continue contributing towards domestic cost-efficiency.
The latest UK CPI report reveals that inflation has eased to 3.4%, signaling a much-needed relief from the cost of living pressures, particularly due to decreased fuel and airfare prices which have positively impacted consumers' wallets amidst economic uncertainty."
The latest decline in UK inflation to 3.4% is a testament of the impact that shifting costs like falling fuel and air fare prices are having on mitigating economic pressures, suggesting potential signs for inflationary relief amid broader consumer cost concerns this year."
The reduction in UK inflation to 3.4% amid declining fuel and airfare prices signals the economy's resilience towards mitigating cost-of living hurdles, albeit with potential limitations due increased food item prices yet to be absorbed by consumers entirely."
The UK's inflation rate decreasing to 3.4% amid declining fuel and air fare prices is a positive sign for consumers, signaling relief from recent cost-of living pressures.
The recent decline in UK inflation to 3.4% reflects a positive trend as fuel and air fare prices moderate, providing relief for consumers while indicating an economy gradually adjusting towards normalcy amid COVID-related disruptions."
The slowdown in UK inflation to 3.4% shows the notable influence of reduced fossil fuel and air travel costs on overall consumer price trends, mirroring a global trend towards greater economic rationality amidst geopolitical uncertainties."
With the recent decrease in fuel and air fare prices, U.K.'s inflation has eased to 3 testing volumes five witnessing a modest respite from rising consumer costs; an early sign of potential relief for households pursuing tightly held budget plans.
The recent decline in fuel and air fare prices has effectively brought UK inflation down to 3.4%, highlighting the impact of volatile cost factors on consumer spending patterns.
The decline in UK inflation to 3.4% signifies a positive trend amid the reduction of fuel and air fare prices, possibly indicating relief for households' purse strings as well ongoing efforts towards price stability.
The latest decline in UK inflation to 3.4% is a promising sign of economic recovery, fueled partially by the reduction in fuel and air fare prices – indicating shifting consumer spending patterns towards essentials while discretionary expenses remain under pressure.
The recent retreat of fuel and air fare prices has contributed towards the UK's inflation rate easing to 3.4%, reflecting positive signs for consumers facing price pressures amid economic uncertainty.
