United Kingdom: Inflation edges up in May
June 18, 2013
In May, consumer prices added 0.2% over the previous month, which mirrored the result observed in April but overshot market expectations of a more moderate 0.1% rise. The reading mainly reflects higher prices for transport as well as for clothing and footwear.
As a result of the monthly price rise, annual headline inflation ticked up from 2.4% in April to 2.7% in May. Annual average inflation, however, remained stable at 2.6% in May.
In its latest inflation report from May, the Bank of England projects inflation to average 2.9% this year, before moderating to 2.5% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 2.8% in 2013, which is unchanged from last month's forecast. For next year, the panel forecasts inflation to average 2.4%.