Inflation hits new low
The UK’s annual inflation rate has dropped again, reaching an almost four-year low of 0.5% for May, down from 0.8% the previous month. Announcing the figures, the ONS pointed to falling petrol and recreational goods prices as one of the main drivers of the change in the Consumer Prices Index (CPI), partially offset by an increase in food and non-alcoholic drinks prices.
The ONS also noted that:
• the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 0.7% in May 2020, down from 0.9% in April 2020; and
• the largest contribution to the CPIH 12-month inflation rate in May 2020 came from recreation and culture (0.23 percentage points).
Meanwhile, figures released by Eurostat, the European Union’s statistical office, show a similar picture. In May annual inflation was down to 0.1% in the euro area, and stood at 0.6% in the EU.
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2020