UK inflation beaten expectations in May as pressure mounts on Government and Bank of England

Thursday, June 22, 2023

Office for National Statistics (ONS) data shows the UK's inflation rate stopped at 8.7 per cent in the year to May 2023, the same rate as the previous April.

"We know how much high inflation hurts families and businesses across the country, and our plan to halve the rate this year is the best way we can keep costs and interest rates down," - Jeremy Hunt

On a month-on-month basis, the headline price index climbed by 0.7 per cent while core inflation, which excludes volatile energy, food, alcohol and tobacco prices, grew by 7.1 per cent in every year, from 6.8 per cent in April and the highest since March 1992, the Office

for National Statistics has said.

The annual rate of food price reduction was driven by declining prices of dairy, cheese and eggs and the annual rate slipped from 29.3% in April to 27.4%.

"We know how much high inflation hurts households and businesses across the country, and our plan to halve the rate this year is the best way to keep costs and interest rates down," - Jeremy Hunt

According to the most recent snapshot from the ONS, falling petrol and diesel prices produced the biggest drop in inflation for motorists, while pressure on prices for food and drink eased following lower-than-expected rises in May.

Rising airfares alongside leisure and cultural goods was cited as the biggest upside contributing to the monthly change, while falling fuel prices were the biggest fallers.

"What started as a commodity price shock has now triggered a wage-price spiral." - David Bharier

Amid continuing price rises, among the fastest in three decades, worries are growing about the continuing cost of living crisis.

Cost increases in food and soft drinks were reported in May, but not as far as in May 2022 - helping the annual rate rebound.

 

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