United Kingdom: Inflation slides in May
Latest reading: Inflation dropped to 3.4% in May from April’s 3.5%, in line with market expectations and above the Bank of England’s 2.0% target. Prices for transportation grew at a slower rate amid low fuel costs and the timing of Easter.
The trend pointed up mildly, with annual average inflation coming in at 2.6% in May (April: 2.5%). Meanwhile, core inflation fell to 3.5% in May from April’s 3.8%.
Finally, consumer prices increased 0.17% over the previous month in May, a smaller increase than April’s 1.24% rise. May’s result marked the weakest reading since January.