United Kingdom Inflation

United Kingdom

United Kingdom: May inflation hits over-four-year low

June 17, 2014

In May, consumer prices fell 0.1% over the previous month, which contrasted the 0.4% increase recorded in April. The figure contrasted market expectations of a 0.2% increase. May’s result reflected that lower prices for food and non-alcoholic beverages and for transports, more than offset the increase in prices for recreation and culture and for alcohol and tobacco.

Annual inflation dropped from 1.8% in April to 1.5% in May, marking the lowest level since September 2009. Annual average inflation also inched down, decreasing from 2.2% in April to 2.1% in May and marking the lowest level since May 2006.

In its latest inflation report from May, the Bank of England projected that inflation would average 1.8% in both 2014 and 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2014, which is unchanged from last month’s forecast. For 2015, the panel forecasts inflation to average 2.3%.


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United Kingdom Inflation Chart

United Kingdom Inflation May 2014

Note: Annual and monthly variation of consumer price index in %.
Source: Office for National Statistics (ONS) and FocusEconomics calculations.

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